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Title: The Tobacco world, v. 54 

Place of Publication: Philadelphia, Pa. 

Copyright Date: 1934 

Master Negative Storage Number: MNS# PSt SNPaAg188.2 



Volume 54 

1934 



X^c^ 



////? 



JANUARY 1, 1934 

* 



t- 




^^U 



The importance of attractive and dependable containers, for 
fine cigars is recognized by the progressive cigar manufacturer. 

Generally the brands that are increasing their goodwill in this 
present analytical market are packed in the new improved 
AUTOKRAFT cigar boxes. 

Cigar Manufacturers who have not investigated the value of 
the merits and economies of the splendid and inviting package 
may obtain complete details promptly by addressing the 
AUTOKRAFT BOX CORPORATION. 



Phi la., Pa. 
Hanover, Pa. 
Cincinnati, Ohio 



Ynrk Pa 

AUTOKRAFT BOX CORPORATION ^ J^^;, ,J 

Lima Ohio Detroit Mich, 

A NalioixWtdc Service Wheeling, W. Va. 




PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA., PA, 



2G455(> 



After all 
^othing satisfies lihe^ 
SNs. a good cigar ^ 



VACfrfV 



WOODEN BOXES 

Are the Only Natural Humidor for Cigars. 



Pack your cigars in wooden boxes and preserve 
their delicate aroma, mellowness and flavor 
right up to the time they are passed over the 
counter to the customer. 

Discriminating cigar smokers prefer to select 
their favorite brand from a wooden box- and it's 
good business to cater to the dealer and con- 
sumer by packing your cigars in wooden boxes. 



XwHEN BUYING CIGARS 

I Remember fhit Regjrdlesi of Pnc« 

I THE BEST CIGARS 

I ARC TAOLO) IN 

\ WOODEN BOXES 




• • * . • . • • 

• • ■• • .• . * 
•-• • • •• . . 






•r 

»■ - 

OS 

DC 
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THE TOBACCO WORLD 



Vol. 54 



JANUARY 1. 1933 



No. 1 



The TOn.U'i'O W'OKI.n has sit/ned the I*rc.udcut's aijrecmcnt and 
is opcratbuj wider XRA Code, (jkuUy and -icludelicartedly cD-ofHToting to 
the fullest extent In the . idiuinistration's effort to [promote industrial re- 
covery. 




y«,ITH TIIK ADVF.XT of tlu- New Year, Imsiiioss 
\iM iroiiorally, and the ci^ar and lobacco industry 
in particular, is lK\i»innini;- to lift its chin and 
tlirow out its chest, coiilidont that the vear 1934 
is g()in,<» to be a decided improvement over the past 
several years. All the important codes aiYectiufj: the 
tobacco inchistry have had public hearini»s in Washing- 
ton and steps toward their adoption are now pro,i»:ress- 
ins: satisfactoril.' with everv evidence of soon reaching: 
a salisractory conclusion, which will ]>e of great bcmeiit 
to the entire industry. 

Those of us who have not had actual ])ersonal ex- 
l)erience with the i)reparation and presentation of a 
(^ode of Fair ('om])etition for an industry are ])rone to 
criticise those who have l)een dele.u:ated to do this im- 
portant work, hut if we could all sit in at the many 
conferences between the wnnnittees and the numerous 
departments of the National Kecovery Administration 
in Washiuiiton, and listen to the manv dilferent sides 
of the ])roblem to ])e met, all of which nnist be taken 
care of — cannot be entiielv ii;nored — and verv often 
nmst be settled by a com])romise of some sort — we 
should beuln to realize the stup(»ndousness of the task 
acc(*mplisli('d. 



riMX(J the latter part of 1933 much has been 
accomplished in the way of re-employment of 
those who have been without a job for many 
months, and in many cases for years, and with 
the extension of the "Blue Ka^le" agreement for an- 
other foui' months we are assured that there is to be no 
let -down in the elTort foi- Ix'tter waives and better living 
conditions for all. 

The financial situation is improving steadily and 
is in a much better condition than a year ago (although 
most of us didn't realize its extremely low estate at that 
time), and with the advent of the Deposit Insurance 
Law on January 1st, the small depositor will have every 
reason to replace his confidence in the banks of the 
country, and with this confidence replaced, nothing can 
stop the gradual improvement in business conditions. 



Cj3 Ct] Cj] 



XD so, we say, look forward to 1934 with every 

assurance that it is going to be a better year 

t luui 1933. Begin the New Year with your chin 

up, for, as our President so aptly puts it: We 

are headed in the right direction, and we are on our 

way. May this New Year be filled with those things 

which make life worth while: IIkalth, Happiness, and 

PHOSPERITV ! 
















The TOBACCO WORLD (established 1881) is published by Tobacco World Corporation; Hobart B. Hankins, President and Treasurer; 
Gerald B Hankins, Secretary. Office, 236 Chestnut Street, Philadelphia, Pa. Issued on the 1st and 15th of each month. Subscriptions, avail- 
able only to those engaged in the tobacco industry, $2.00 a year, 20 cents a copy; foreign, $3.50 a year. Entered as second-class mail matter. 
December 22, 1909, at the Post Office, Philadelphia, Pa., under the Act of March 3, 1879. 



Musings of a Cigar Store Indian 



By Chief "Young-Man-Smoke-Cigars" 





ILL ROGERS waited luiiil 1om,o- after he had 
reached manV c-i.-ii.' iM'I'ore lie underwent an 
exi)erienoe that en me lo most of ns as boys. 
He «-ot sick from Jiis lirst smoke. One of the 
episodes in the ])iotiire on wliieh he is now working 
in Hollywood called for the wisecracking-, lariat-throw- 
ing, homes])nn-])hilosoi)hizinu eomedian to draw on a 
pipe. After a few moments, the action of the picture 
had to be snnnnarily sto])])ed. The news dispatches 
did not describe the symptoms, but went on to say that 
Will was given a dose of aromatic spirits. Now the 
actor is qualified to give ns an impersonation of 
Huckleberry Finn, with his omnii)resent corncob. But 
he might have saved himself tliat momentary indis- 
position if he had only taken a lesson or two from 
Mme. Chantal Qnennville, whose oil paintings, embel- 
lished by wax, eggs and casein, have created a furore 
in Paris, She is an inveterate pipe smoker. 

£t3 CJ] [t] 

AUL nABRISON touches on some of the in- 
teresting sideliuhts connected with the smok- 
ing of celebrities. J. P. Morgan, for example, 
will not touch anv cii»ar other than his owTi 
special blend, made in Havana, Yet he's inclined to 
be a little olYended if some equally discriminating 
smoker refuses one of the Morgan lirand. George 
Arliss .carries cigars which look exactly like the two- 
for-a-nickel stogies he smoked in less prosj)erous days. 
Yet the present ones are made to order and cost al- 
most as much as Mr. ^loruan's. Frank A'anderlip, the 
financier, gels cii»ar> at liii cents apiece at any con- 
venient store. P>ut William <Jreen, president of the 
American Federation of Labor. i)avs sixtv cents each 
for his cigars, and pulfs througii a <lozen a day. 

Ct3 Ct] [t] 

BOFT the onlv Inxnrv in which the late Calvin 
Foolidue indulued, continues i*aul, as quoted 
in the SoiifJurH Tnhari o Journal, were eighty- 
cent cigars. Herl)ert Hoover still orders a 
fme blend at ^t^Hn the hundred. Frank Roosevelt smokes 
cigarettes. Al Smith smokes eiuar.>>. There still are 
tobacco connoisseurs, however, who sigh over vintage 
tobacco and love to discuss color and leaf and firmness. 
They believe that a cigar is not worth smoking until 
it has aged at least ten years, so they store their pane- 
telas and perfectos in advance in some of the humidor 
vaults maintained by the h'v^ houses such as Park and 
Tilford, and Dunhill. Albert Wiggin and Eugene 
Myer, tlie bankers; Flarence ^lackay, Adolf Zukor 
and Owen Davis are >onie of those who go in for 
vintage tobaccos. I)oui;la- Fairl>anks buys his long, 
blunt cigars in Xow Yoik for Jt^G.j a hundred. Some 
smokers pay up to $9G a hundred. I*ark and Tilford 
occasionally make up an 18-inch si'ze for $5 each. These 
are mostly for gifts, but a Chicago millionaire ordered 
a hundred of them for liis yacht. John Mc('ormack 
and Gain Furci like long, specially-made, filtered ciga- 
rettes. 




Y«a HAT is believed to be Henry AVadsworth Long- 
^K^ fellow's pipe, dating back to 182."), was found 
when a partition was ripjied from the wall of 
the house where the poet lived while a student 
at Bowdoin College. The pipe was filled with tobacco. 
And Girard, in the Philadelphia Inquirer , reports that 
there are in the United States only about 100 business 
concerns which have been in the same family for 100 
years or more, about half of them being in Pennsyl- 
vania, or in the Philadeljihia territory. One of these 
remarkable institutions is the Demuth tobacco house 
of Lancaster, which was born in 1770 and has never 
moved from its original building. Selling tobacco 
over the same counter as was done six years before 
the Declaration of Independence! 

CJ3 Cj] Ct3 




EEMS as though that Oklahoman picked out 
as good a way as any of judging the trend 
of general conditions. His gauge is the rise 
and fall in the number of cigars he receives as 
Christmas gifts. He pointed out that four years ago 
he received thirteen boxes of cigars; three years ago, 
three boxes; two years ago, one box, and last year, 
two cigars. Up to the time of going to ])ress we have 
received no report of this year's grist, but we have 
a hunch, judging from our own experience, that it was 
somewhere between the three boxes of 1930 and the 
thirteen boxes of 11)29. It is a tri])ute to the fair trade 
ethics of the tobacco business that the only establish- 
ment in the trade from which the Blue Eagle was with- 
drawn turns out to be a restaurant, instead of a to- 
bacco store, or at any rate, a restaurant department 
of a retail tobacconist. A waitress in the AVhite Cigar 
Stores, Norfolk, Va., reported that she worked G8M2 
hours a week and received $7. On the second notice 
the employer appeared before the local board and 
stated he would close the restaurant and discharge the 
employees. His obligations and privileges were ex- 
plained. He did close the cafeteria and discharge the 
employees. The local board reported the store as a 
**consistent offender; has done nothing reasonable 
since the beginning of the NRA movement." 

Ct) Ct3 Ct3 

KLAHO^fA crops up again in the tobacco 
news with a storv that eightv-five-year-old 
Aunt Jane Headrick has just completed her 
third quilt made from tobacco sacks. She rips 
the sacks apart, dyes them various colors and assem- 
bles them in a variety of geometric designs. Tn mak- 
ing the three quilts she has used two thousand sacks. 
* 'Don't Smoke Old Rags! One might as well smoke 
old rags as try to get satisfaction or enjoyment from 
dry tobacco. Our tobaccos are always fresh. They're 
kept in a special Humidor." That is the copy on a 
bulletin mailed out by a Canq)bellton, New Brunswick, 
tobacconist. 

The Tobacco World 





Bigger and Better Business 

IGGER Bayuk Business in 1934 was the keynote 
of the annual two-dav convention held at the 
Ninth and Columbia Avenue head(|uarters and 
attended by the company's territorial and 
branch managers from all over the country. The con- 
vention came to an end with a festive bamiuet at the 
Hotel Adelphia, on December 28th. 

H. S. Rothschild, i)resident of Bayuk Cigars, Inc., 
made the address of welcome and outlined the plans 
and i)olicies for the coming year. 

A. Jos. Newman, vice-president in charge of sales, 
presich'd at the meetings of the convention and inspired 
the men with his enthusiasm to continue the "message- 
to-(iarcia" spirit which has been largely responsible 
for the sensational rise of Phillies and other Bayuk 
protlucts during the year just closed. 

Harry Wornian, vice-i)resident in charge of manu- 
facturing, gave an informative descrii)tion of the vari- 
ous phases of the production methods in the world's 
largest cigar plant. 

Neal D. Ivey, advertising counsellor, impressed the 
salesmen with his talk on the dovetailing of the com- 
pany's advertising x)rograni with its sales activities. 



Bayuk Introduces New '* Prince Hamlet 



> > 




Marc H. Mack Passes 

ARC H. ^lACK, an original member of the firm 
of Hirschhorn, Mack & Co., manufacturers of 
Tom Moore, Little Tom and Henry George 
citrars, died on December 21 of pneumonia at 
his home, 111 East Fifty-sixth Street, New York City. 
He was eighty-seven years old. AVhile he retired from 
active business in 1910, he retained an interest in the 
firm and in its successor, the General Cigar Co., formed 
in lini, until the day of his death. 

He maintained an active interest in various chari- 
ties. He estal)lished Big Tree Farm for cardiac chil- 
dren in memory of his wife and turned it over to Mon- 
tefiore Hospital. He was a former director of the 
Hebrew Infants' Asylum. Surviving are a daughter, 
Mrs. Mildred Mack" Mayer, and two sisters, Mrs. 
Laura Newburi^di and Mrs. Hannah Frank. 



Passaic Plant for Santaella 

A. Santaella & Co., manufacturers of thi* well- 
known Optimo cigar, are prei)aring to go into ])roduc- 
tion in the new ])lant recently leased in Passaic, N. J. 
Operations in this new N«n-thern plant will ])e in addi- 
tion to the c«»mpany's manufaclnrinu; activities in 
Tanq)a, Florida, where it lias for many years been one 
<.f the most prominent factors in the industry. 

It is expected tliat along with the Optimo brand, 
the other Santaella pnxhicts will also be turned out in 
the Passaic factory. These inclmle As You Like It, 
which is another n"iend)er of the quality price group, 
and Alluro, which it is planned to develop in the five- 
cent sha<le- wrapped held. 



Tampa ciuar manufacturers and workers have 
reached an aicreement for a three-year abstinence from 
strikes and lockouts, all controversies to be settled by 
arbitration, and a wage scale to be agreed upon when 
the tobacco code becomes oi)erative. 

January r, 1934 




Conventional <lesit>n in cigar boxes was discarded 
completely by Bayuk Cigars, Inc., in creating a package 
for its new Prince Handet Cigar. The color scheme of 
the box is black, gold, to1)aeco-brown and ivory. The 
effect is one of extreme richness and dignity — the pur- 
pose being to reflect the high ([uality of the cigar. 

The box carries a certiiicate — signed l)y tlie Regis- 
trar of Tobaccos, Havana, Cuba — worded as follows: 
'*I have personally examined the Havana Tobacco used 
in Prince Hamlet Cigars and hereby certify that this 
tobacco is of the highest ipiality — selected from the 
finest grades grown in Cuba." 

Prince Hamlet Cigars are available in five popular 
sliajies — priced at P* cents, two for 25 cents, 15 cents 
strainht and three for 5U cents. 



Brown & Williamson Union Factories 

The Brown iV' Williamson Tobacco Corporation has 
signed an agreement with the Tobacco Workers Inter- 
mitional Union whereby their factories located at 
L(Uiisville, Kentucky: P'etersbnrg, Virginia and Win- 
ston-Salem, North Carolina, effective as of this date, 
become union factories. 

The union laV»el will a])pear on their different prod- 
ucts as soon as )»ro]>er machinery can be installed to 
place tliis la))el <»n the ])acka,i:e. 

The P.rown iVl' WilliMm^on Toliacco Corporation has 
uiven supp(»ri l<» all of the reunlalions under the 
N. P. A. and, in cont'<.rininu' t(» the lab<»r code, they 
decided thev would not «»nly nied in fidl measure the 
provisions of that code, but are ulad to go a step fur- 
tlier and welcome the oiuanization ot' their enq)loyees 
in the ranks of organized labor. 



The Pennstate Ciuar Corp., manufacturers of the 
Hilo and Fiuvoy brands, are making iireparations to 
launch their new live-ciMit brand, Stanwyck, early in 
Januarv. The Hilo and Lnvoy brands were immedi- 
ately accepted by the trade u])on their introduction 
last year and the new Stanwyck l)rand has all the ap- 
l>ear*ances of being accorded tiie <ame reception by re- 
tailers and consumers. 



^.i 



V 



News From Congress 



iWiliT/ 



m\j{. mm 



•(•^OliBtk. 



^ 



Jlili! 






'T^ial 



^.MJAi^rmm^Jki' 



••*w< la. 




liFIXITE signs of business revival liave made 
tlieii- appearance tlironsiliout the world, but 
excessive trade restrictions, disorsranized 

>,nAir.ni TT' '''■'" '>'"'l^'"^- fliKtuatinj. exchange 
and tiade declines are retarding the expansion of busi- 
ness, It IS declared l)y Secretary of Commerce Daniel 
C. Koper in his annual report. As a means of readi- 
ng an ultimate solution of the worl.Ps economic prob- 
lem, the Secretary urges international consultations 
and concerted action to eliminate llie policies liaiime •- 
ing the revival of business. ".mipci 

"In the United States, signs of resistance to fur- 
ther contraction appeared in the lirsl half of the fw,-al 

'rs\leCite!;- stemmed' ""'"""■ "'" '''" "'' ''^•"""•"' 

„f tl!!^'?"^'-''"''*' ''■'■" ■"'■''"">■ ■■^"•»''>?-'thened as a result 
of the decisive governmental action, business activ v 
quickened, and by the end of iho fiscal vear substa.-- 
tial progress had been made. Xeverthbless the e 
scent fron, the li)L'9 level was so slia r and so loit 
maintained that despite the constructive wo rk of tl e 
President and Congress and the wholehearted su, p 't 
of the people, conditions at the close of the fiscal 'e'r 
remained tar from satisfuctorv. The eco, oiiic stru • 
Jure continued to be badly in i.eed of supl'i-rand re! 



* CJ] Ct3 

BROAD program of legislation, dealing not 
only with recovery and relief activities but 
also with more iternianciit subjects is ,.x 
■A . n Pec'ed to be suggested to Congress bv Pr.'s 
ident Roosevelt in his annual message at the openin- 
ot the .session. AMth the monetary situation of out" 
standing importance, a consideralile ,,ortioii of the 
President .s message will be devoted to the ..uesiions 
of gold and silver, agricultural Mdjustment. n'-ci,,,,)." 
ment and the move tor trade expansion. Hankiii.' and 
currency also will be di.scussed. in the light of , | ,7 • ! ' 

S'sireet. ■ *^'""*' ''"""'""^'^ ^^''i''"' investigated 

The failure of the Administration 's gold-buviii" 
program o raise prices in (his count, v ami her 
tinued agitation for inflation are ,.MH.;.|e,l to I e e, 
b> the Pre,..dent with a program which will avoid I « 
dangers ot Ihc alter an.I give assuiaii,.e that llie le ' 
ures already adoiMed will not react unfavorablv on 
he country Failure of the banks to n lake ere d 
loans to industry for recovery purposes ma 1 . met 





Federal 
Departments 

iiwMi'i " "n ii yr""^"^"" ^"''^^" ^^^^^«" su'iwNG 

by a demand thai they oillier "loosen up" or face the 

.■ompelitioii ot Federal loans, either through some ex- 

s ng aoeiK or by ,],e establishment ot' a " upor- 



C!3 Ct) O 

H-\l)Jl-ST-MFXT of indiislrial codes in which 
labor iirovisions and general regulations in- 
crease prices unduly will be demanded shortly 
. . Iiy Oeneral Hugh S. Johnson, Recovery Ail- 
m.n.strator. J- xph.ining that codes originally adopted 
nere developed without any past experience to dr-iw 
..l.'.n, ( eiieial Johnson beli.'.y.is that the Ih.^e hat co iie 
..check up on results and make rea.l.juslments where 

:u.r,S;';',!:r'hiS. '''"'' ''' '^'•'^^'"™'^ "^-^ -" '- 

unfi/'Iffel','l?''T''"'!-' '"• ''"'""."^^ "'"''^ ^•■■" ^ >""<'<' 

d t . ., ' ";"'"'-^ "" l"-"-*^ '•■'iH'.^i's now sehed- 

iiled to be hehl January !». These hearin-s were 

ordered lollowing receipt of complaints that i^ some 

.stances prices ha.l been increaMi to greater extent 

iiir "::;.£' '•• "^ '•"'^""""'" <^-' of producibil 

In initialing his program for readjustments C.on- 
eral Johnson will order a check of al codes alVemh 
... operation One or two of the codes he declare 
will have to be sc.apj.ed coniplelelv and more or [ess 
dras,.. changes will be required in a number of other 
vhich have been in operalion long enou'di f.,r the /;ov 
<'n....ei,t to delermine that they have ha a exa..."er" 
ated efTecl upon jirices. .-Aa^.^cr- 

^ ^ tti 

IfAVK possibilities ijiat polities may be in- 
.M'cled into the adniinisi ration of "recovery 
codes are soei, by industrial hNulers in intinm- 
t O..S t.o,M lecovery a.lminisf .ation oflicials 
s ' ';n.lia I.ons of nominees for member- 

s p on co-le ai.lli.,nli,.s .,r subor.linale coniniiltees 
; ;;:'-;l^ ;•, I l.e sUulied aIo„g with their busi e.!s 

ana pci.sdnal .staiidiuLr-. 

n,o.;;.S::s:'i:r;j-;:;::;;;,:r:;':>,/-.s:;-iix^^ 

Two codes alone-for Ihe oil and niolion picture 
ndisliies--hav,. necessitated nearly ]0().) a o it 

IstraUon. ""' ''''"'" "" "'■ "'^' "-'''"cry for'Sil'n: 

The Tobacco World 




Cigars and Cigarettes Decline in November 




UK followin.i": comparative data of tax-paid 
l)ro(liK'ts, indicated by the monthly sales of 
stamps, are issued l)y the Bureau/ (Figures 
for Xovember, 1!):^:^,* ai-e sul),iect to revision 



19S2 



uuiil published in the annual r^imrt) : 

— Novewhcr — 
Prodttcfs 1933 

Cigars (larc:e) : 

Class A No. 334,280,095 

Class B No. 

Class C No. 

Class D No. 

Class E No. 



4,15:},37:^ 

Cn,487,2r)0 
6,188,011 
l,238,rj94 



320,027,450 

4,017,fJ:?0 

87,190,924 

(>,849,2:^() 

1,088,188 



Total 415,;]47,323 419,173,428 



Cigars (small) No. 10,587,200 

Cigarettes (large) ..No. 371,150 

Cigaretes (small) ... No. 6,835,038,093 

SnufT, mfd Lbs. 2,612,169 

Tobacco, mfd Lbs. 22,794,824 



21,550,413 

304,992 

7,613,941,573 

2,850,78!) 

25,148,846 



Tax-paid products from Puerto Rico (not included 
in above statement) were as follows: 

— November — 
Products 

Cigars (large) : 

Class A 

Class B 

v^iass L/ 



.... No. 
.... No. 
. . . . i\ o. 
Class D No. 



1933 

5,330,050 
426,200 
137,400 
500 



198$ 

6,874,860 

10,500 

240,000 



Total . 



5,894,150 



7,125,360 

Cigars (small) No. 300,000 500,000 

Cigarettes (large) ...No. 70,000 60,000 

Cigarettes (small) ..No. 200,000 168,0(M) 

Tax-i)aid products from tlie Pliilippines (not in- 
cluded in above statement) were as foUows : 

— November — 



Products 
Cigars (large): 

Class A No. 

Class ]^ No. 

Class C No. 

Class I) No. 

Class K No. 

Total . 



1033 

23,240,020 

17,707 

47,890 

700 

130 



1932 

13,122,685 

72,997 

48,490 

750 

886 



• •■••«• 



23,306,447 13,245,808 



Cigarettes (large) 
Cigaretes (small) 
Tobacco, mfd. . . . 



. No. 
. No. 
Lbs. 



137,720 



8,950 

143,940 

22 



Internal Revenue Collections for November 

Sources of Revenue. 1933 1932 

^'\mr^ $1,170,125.29 .$1,218,332.0S 

Cigarettes 20,508,263.32 22,844,746 92 

|nuff 470,190.48 5L3,142.09 

Tobacco, c h e w i ng and 

^. ^"»oki"l? 4,1 03,1 f)6.84 4,527,025.35 

Cigarette papers a n d 

,,. tiijH^^ 61,648.37 82,985.69 

MisceJIaneous, relating 

to tobacco 185.60 402.90 

January i, igj^ 



Total Withdrawals for Previous Novembers 



1920 
1921 
1922 
1923 
1924 
1925 



668,060,015 
615,251,258 
679,300,302 
650,687,413 
601,412,539 
598,478,129 



1926 
1927 
1928 
1929 
1930 
1931 



654,975,106 
654,164,577 
630,530,692 
622,938,344 
528,127,899 
477,458,157 



Processing Tax Returns 



Detad of collections from processing and related 
taxes i)rocIaimed by the Secretarv of Agriculture 
under authority of the Agricultural Adjustment Act 
Kr" '~ 1<>— 73d Congress), approved May 12, 

Total from 
July 1, 1933 

(Fiscal 
Year 1934) 



Month of 
Commodity November, 1933 

Tobacco, (tax eflPective Oc- 
tober 1, 1933) 

Processing taxes .... 
Im|)ort compensating 

taxes 

Floor tax, other than 

retail dealers 

Floor lax, retail deal- 
ers 



$200,970.53 

15,756.06 

961,105,88 

103,469.07 



$200,970.53 

29,342.60 

1,647,407.33 

106,037.72 




Total tobacco . . . .$1,281,301.54 $1,983,758.18 
Fhie-Cured Tobacco Return to Be Two and a Half 

Times That of 1932 

LrK-C['KKI) tobacco growers will receive for 

their 1933 crop now being marketed more than 

two and a half times what the 1932 crop 

brought and about twice what thev received 

ficun the 1931 crop, according to J. B. Hutson, chief 

ot the tobacco section of the Agricultural Adjustment 

Achiiinistration. 

The 1933 crop is expected to bring growers in 
N(Hth Carolina, South Carolina, Viririnia^ Georgia, and 
Florida, about 110 million dollars. This is exclusive of 
approximately 21 million dollars in benefit and rental 
paymcnt.s to be made by the Agricultural Adjustment 
Administration to growers who sign agreements to re- 
duce ])roduction in 1934. In 1932 the flue-cured crop 
sohl for 43 million dollars and in 1931 it brought 56 
million. 

Tlie price improvement this year, Mr. Hutson 
stated, was brought al)out in s])ite of the fact that the 
crop exceeding 700 million |)ounds is almost twice the 
size of tli(» 1932 crop. It was made possible through 
the sii|)port that growers gave the Administration's 
prgram to bring 1934 i)roduction more in line with re- 
quirements. As a result of growers pledging them- 
selves to sign formal reduction aureements during the 
mark«'t holiday between September 1st to September 
25tli, a marketing agreement with tlie big domestic 
buyers of flue-cured tobacco was made possible. This 
marketing agnM-mcut, backed by the ])rospoct of re- 
duced production in 1934, liftc(i the general level of 
fhie-cnred tol)acco prices in spit<* of a crop which will 
add about 100 million pounds to the world's flue-cured 
tobacco surj)lus. 

(Continued on page 15) 



Eleven Months Withdrawals for Consumption 



Cigars : 
Class A — 
United States 
Puerto Eico , 
Philippine Is. 



First 11 Mas. 
Cal. Yr. 1933 



3,468,781,245 + 

52,265,545 — 

170,369,690 + 



— Decrease 
-{-Increase 
Quantity 



168,176,175 

13,887,965 

7,386,230 



Total All Classes- 
United States . . 
Puerto Rico . . . 
Philippine Is. . . 



4,068,062,093 
55,993,575 

170,782,581 



+ 



Grand Total . . 4,294,838,249 



120,692,975 
13,146,435 

6,827,877 

127,011,533 



Total 3,691,416,480 + 161,674,440 



Class B— 
United States 
Puerto Rico , 
Philippine Is. 



26,616,289 

3,029,250 

184,107 



— 21,511,415 
+ 2,853,250 

— 466,162 



Little Cigars : 

United States . . 
Puerto Rico . . . 
Philippine Is. . . 



196,187,453 
3,274,000 



69,967,841 
976,000 



Total 199,461,453 — 70,943,841 



Total 29,829,646 — 19,124,327 



Cigarettes : 



Class C— 
United States 
Puerto Rico 
Philippine Is. 



525,880,504 
697,780 
223,956 



257,584,466 

2,110,020 

55,356 



United States 
Puerto Rico , 
Philippine Is. 



103,963,817,426 + 7,697,045,727 
3,275,600 — 507,100 

1,362,230 + 107,103 



Total 103,968,455,256 + 7,696,645,730 



Total 526,802,240 — 259,749,842 



Class D— 
United States 
Puerto Rico 
Philippine Is. 



41,959,541 
1,000 
2,076 



10,278,489 
1,700 
1,800 



Large Cigarettes: 

United States . 
Puerto Rico . . 
Philippine Is. . 

Total 



2,567,485 — 

775,000 4- 

7,937 — 



729,567 

262,000 

2,013 



3,350,422 — 



469,580 



Total 41,962,617 — 10,281,989 



Class E— 
United States 
Puerto Rico 
Philippine Is. 



Snuff (lbs.)— 
All U. S.. 



33,932,511 + 



681,198 



4,824,514 + 



» • • • ■ • 



2,752 — 



Total 



4,827,266 + 



505,220 

35,035 

470,185 



Tobacco Mfd. (lbs.)— 

United States . . 
Philippine Is. . . 



285,610,041 
169 



5,707,918 
348 



Total 285,610,210 — 5,708,266 



Cigar Container Code Authority Elected 




T the meeting of the Cigar Container Indus- 
try held under the auspices of the Xational 
Cigar Box Manufacturers Association at the 
Benjamin Franklin Hotel, Philadelphia, on 
Saturday, December 16th, for the purpose of electing 
the Cigar Container Code Authority the following 
were selected: ' ° 

Rodgers Neely, president, A. H. Balliet Corp., 
Allentown Pa chairman; Harry W. Buckley, presi- 
dent, Autokraf t Box Corp., Lima, O. ; Charles Fisher, 
J. Henry Fisher Sons, Baltimore, Md. ; David Gross 

^^fu v\^'^Y5^^ C^mP'-^ny, Red Lion, Pa.; E. B. 
bhultz, ^atlonal R^exjovery Administration, Washing- 
ton D C. ; George H. Snyder, George H. Snyder Inc 
Philadelphia. Pa. ; Harry F. Ungar, Alexandefunga^^^ 
Inc., New Brunswick, N. J. ^"gar, 

E. B. Shultz, member of the Code Authority rep- 
S^'^ ^^? Y'"^^, ^^^ovevy Administratic^, ^. 

S I'f t t:ti^£^;^^^^'^' - ^^^ -^-- 

Frank H. Warner, of Philadelphia, Pa., was re- 

iwf if TT^^ and Hobart B. Hankins, of Me?- 
chantvdle, N. J, was elected executive secretary 



The executive offices of the Code Authority are 
located at 236 Chestnut Street, Philadelphia, Pa., 
where information concerning the Cigar Container 
Code may be obtained. 

The Code Practice Committee, which set up the 
Code was complimented for the efficient manner in 
which it had completed its work. 
v^hdlit interesting to note the progressive manner in 
which the Code Practice Committee brought its activi- 
ties to a conclusion. Work on the Code, under the 
direction of ^fr. Neely, the Chairman of the Code Prac 
tice Committee, was begun in early June. The Code 
was submitted for analysis and criticism in late July. 
The Code was filed for a hearing on August 11th and 
received Code No. 303. It came to a hearing on Octo- 
ber 19th and was registered as hearing No. 188. It 
was signed by President Roosevelt on November 27th 
as approved Code No. 135, and became operative De- 
cember 11th. 

Its Code Authority was elected and organized on 
December 16th and is among the first ninety Code 
Authorities organized to date. 

The Tobacco World 



Stop Price-Cutting! 

By WILLIAM A. HOLLINGSWORTH 
President, Retail Tobacco Dealers of America, Inc. 




OR THE PAST few years the retail tobacco- 
nists of the whole United States have been sub- 
jected to the meanest form of predatory com- 
petition. They have been compelled to stock 
and turn over large quantities of tobacco products at 
an absolute loss. The Retail Tobacco Dealers' and the 
Tobacco Distributors' Codes of fair competition were 
the first codes of the tobacco industry. 

The Retailers' Code was drafted at the Retail To- 
bacco Dealers' convention, held in New York City on 
the 17th and 18th of last June. It was drafted by rep- 
resentatives of every type, class and kind of retail to- 
bacconists in the United States from every part of the 
United States. 

Interdivisional differences and requirements of the 
retail tobacco business were all reconciled in this Code 
— large chain interest, small individual storekeepers, 
price-cutters, regulars, and the i)roponents of higher 
prices— all subscribed to the Code, and it has stood 
every test that time and delay could develop. In draft- 
ing their Code, the retailers were constantly mindful of 
the consumer's welfare, also that of the farmer, manu- 
facturer, laborer, wholesaler. 

In this Code the retail tobacco dealers are seeking 
protection against the price-cutter who so ruthlessly 
attacks tlieir business as to remove almost every chance 
of earning a living from it. The greater part of this 
predatory competition comes from businesses alien to 
the retail tobacco business. 

Retail tobacco dealers amongst themselves can 
agree and with little difficulty maintain fair trade prac- 
tices. Their principal complaint is the invasion of the 
ruthless price-cutting methods of retailers in alien 
fields of merchandise. These cast their net over the 
entire retail tobacco business. The chain grocery 
store, department stores, clothing stores and super- 
markets are the offenders who make loss-leaders of 
cigars and tobacco products — seldom the retail tobac- 
conists. The retail tobacconists must have protection 
from this external predatory competition, or they will 
be squeezed entirely out of the tobacco business. 

Wages and Hours 

The retail tobacco dealers ask parity of hours with 
tlie druggists who have been allowed, by Code, to em- 
ploy their labor fifty-six hours per week, for stores 
open seven days a week, for not less than eighty-four 
hours per week. 

I. Drug stores are the principal competition of the 
tobacconists in the sale of tobacco products. According 
to the retail distribution census of 1930, it is seen that 
30 per cent, of all tobacco products sold in the United 
States is sold in drug stores as against 42 per cent, sold 
in tobacco stores. 

II. To restrict the tobacco store employees to 
forty-eight hours as against the drug stores fifty-six 
hours for seven-day stores will discriminate against 
the tobacco stores to the extent of 16 2/3% on labor 
charges. 

III. It will also be seen this discrimination of labor 
costs of distribution will cause a greater shifting of 
tobacco sales to drug stores, as many tobacco stores, 

January i, ig$4 



finding it impossible to meet the differential of labor 
costs, will confine their store hours to six days a week 
and a considerable additional volume of tobacco sales 
will find its way into drug stores. 

IV. If tobacco stores are influenced to restrict 
store hours to sixty-six hours instead of encouraged to 
remain open eighty-four hours, the minimum loss of 
re-emi)loyment will be ten hours a week for each store 
engaging help. 

V. There is nothing to be gained by differentiating 
in labor hours between tobacco shops and other stores 
competing for tobacco business, and only operates to 
favor stores, restaurants, or hotels which are permitted 
longer hours for their employees, and thus works an 
unavoidable hardship upon the retail tobacconists who 
employ help. 

The proponents of this Code have given consider- 
ation to every phase of retailing tobacco products, in- 
cluding working hours of the employees. The Code is 
designed to comply with NRA, and to promote fairness 
in competition and to create advantage for no one. We 
feel confident the drug stores concede this, and will 
endorse the retail tobacconists' plea for parity of 
hours. The drug stores and the tobacco stores are 
entitled to the hours schedule, as set up in the Code, as 
it has been the custom for years to keep these stores 
open longer hours per week than any other class of 
retail outlet, excepting possibly restaurants. 

To encourage the retail tobacconists who elect to 
do so to operate under Labor Schedule D, allowing to- 
bacco stores which remain open seven days a week, for 
longer than eighty-four hours per week, to employ their 
help fifty-six hours, will develop re-employment. Not 
to do so would curtail possible re-employment in the 
retail tobacco business and impose an unfair hardship 
upon the retail tobacconist. 

Merchandising Provisions 

The consumer's interest is protected by the Retail 
Tobacconist Code. Consider, the retailers have agreed 
in their Code to pay as much as 4 cents for a cigar, 
which will be advertised or listed to retail at 5 cents 
each; this is what is meant by a mark-up of 25 per cent, 
or a gross margin of 20 per cent, on a sale. Could anv 
one consider this plan of merchandising as profiteering 
or as having the possibilities of developing monopoly 
or designed to hold the consumer up for an exorbitant 
profit! As an additional guarantee to the consumer 
against possible profiteering or overcharging, the re- 
tailers have fixed as a top a maximum margin of 28 per 
cent. 

Add to the wholesale cost of 4 cents per cigar, 
which retails at 5 cents, any selling expense in the way 
of pay to clerks, rent, light, heat, matches, etc., etc., and 
then calculate, if you can, the retailers' net profit. It is 
infinitesimal. 

In accepting this minimum of 20 per cent, gross 
profit, the closest margin any retailers have ever agreed 
to, or the highest price ever paid for a 5-cent cigar, the 
retailers protect the consumers against either paying 6 
cents for the present 5-cent cigar, or cheapening the 
quality of the present good 5-cent cigar. 



To clieapcn the quality or raise tlic price of the 
cigar will affect tlie fanner; either change will certainly 
curtail consumer consumption of cigars, thus lessening 
the market for the farmer's tobacco. Cheapening the 
quality curtails consumer desire, also calls for lower 

111 

material costs, and an odd ])rice of (> cents woukl surely 
create sales resistance and reduce consumer demand. 

That a 6-cent i)rice for the present o-eent eigar 
would cause a setback in consumption is delinitely es- 
tablished in every retailer's mind. Kelailei's who have 
applied themselves to the retail lobaceo business for 
years know this. There is no argument which could 
upset the retailers' oi)inion on this jKunt. To raise the 
present o-cent cigar to () cents would ruin the existing 
market for real 5-cenl cigars, and the cigar industry 
would sulfer a serious decline in volume. 

Eiiihtv-iive ])er cent, of the eii;ar consumption to- 
dav is in Class A or o-cent ciuars. This is whv such 
high (pudity exists in this class of eiuar. Each manu- 
facturer is vvinu with the other to rtroduee the best 
5-cent cigar obtainable. It's getting so the country no 
longer needs "A good o-cent cigar." Kather, the 5- 
cent ciiiar now needs a uood count rv. This is no i)un; 
it is the absolute truth. This line o-cent cigar and the 
consumer will both profit by maintaining an honest re- 
tail market. 

The retailers, as you can see, have given consider- 
ation to the welfare of the consumers' interest, and the 
farmers likewise. This isn't all: labor and the numu- 
facturers also were considered. The jnevious whole- 
sale price for gootl 5-cent cigars was .I.J tents, or top 
price, 3. J cents. The accepted increase in tlie wholesale 
price of cigars from -o ])ei" cent, to 14 i)ei' cent, allows 
the manufacturers a latitude to take up some additional 
labor and jirocessing charges. 

These })rices, of course, are not the nuinufacturcrs' 
prices, but the wholesalers' prices to tlie retailers, and 
are intended only to show the sacrifices the retailers are 
making to secure the consumer, the farmer, labor and 
the manufacturer the utmost iii service and quality for 
the least amount of nionev. 

• 

Matches are mentioned in the selling expense 
charges. The giving of matches with tol)acco jnirchases 
is a custom which cannot be abolished without antag- 
onism on the \n\\{ of the consumer. The lowest cost of 
the cheapest advertising matches totlay is $0 jier 2500 
packs, or oiie-iifth of a cent a ]»ackaiie. This price is 
for matches carrying an outsid<* advertisement, such 
as chewing gum, tooth ])aste, etc. This means these 
advertisers pay i)art of tin* matt-h cost in onler that the 
retailer may ]>rocure the matches t'oi s^r» a cas(». The 
cost without an outside ad is consideral)ly liigher. 
There is a heavy tax on matches today. 

During the hearing of the Ciiiai- Manufacturers' 
Code, the (juestion was asked why the odd ]»rice or 
penny piic*' did not affect the sale lA' ciuarettes. A 
pro])er answer to this (piestion would have ])een that 
the odd i)enny price did delinitely alTect tlie sale of tiie 
cigarette. 

First, consider that the present odd penny i>ackage 
jjrices of pojjulai' brand cigarettes, often referred to as 
the "Biu 4," w<'re for ye.-»r^ after the war eitlier adver- 
tised at IT) cents or considered as l.'j-ccnt sellei-s. Pricf- 
cutting l)ecame the vogue, and the retail j)rice diopjHMl 
to 14 cents, the consumer looke<I upon tlie ])eniiy as a 
saving. This certainly u-ouhJ tifff develoj) sales resist- 
ance; tlie retail price dro)»ped still further to 13 cents, 
two frir 25 cents. Again the consumer looked upon the 
change due to tlie cut price as a saving. 

JO 



Then, quite by accident rather than ])y design, in 
1928 the 10-cent ci<>arette reallv came into the field. It 
was ])ut on the market to liquidate a frozen asset. A 
large ([uantity of tobacco, representing an inventory of 
some two millions of dollars, could not be moved in the 
then ordinary tobacco market, so it was decided to i)ut 
it into ciuarettes to sell at 10 cents a ])ackage of twenty. 
The idea (piickly caught on and j)roved a winner. The 
inventory was rKjuidated in short order. Other cheap 
tobaccos were obtainal)le, the idea began to grow, and 
before the "Big 4" realized what had hai)])ened, the 
10-cent cigarette had aciiuired ai)])roximately 2G per 
cent, of the cigarette consumption of this country, and 
the manufacturers making them had gained so signifi- 
cant a ]»osition in the ciuaiette field thev were recoij- 
nized as the "Little 4." Panic reigned. 

The "Little 4" could make a scant ])rofit as they 
had little overhead and no advertising; their product 
sold solely on price. How to beat this competition be- 
came the conqilete concern of the "l^ig 4." 

The best way to meet the competition was to in- 
crease tlie jienny saving to the consumer, give him 3 
cents to 4 cents change from his normal 15-cent ])ur- 
chase and then, when this was tried, and not successful, 
a final reduction in the retail price to 10 cents took 
place. At a 10-cent j)rice, of course, the *'Big 4'* 
niopp<Ml u]) the competition; because they advertised, 
their ])rands continued to be recognized as reduced 15- 
cent sellers. The ])rice wai- wountl up with the "Big 4*' 
brands, which cost 11 cents a i)ackage wholesale, being 
sohl at lOto a ])ackage retail. 

Who lost in this l)attle of giants! The Poor Little 
UrtaUtr and ])erha}>s the farmer. The retailer's scars 
are deep. Ko wonder they live in constant fear of 
again l)eing used as a shield of ])rotection against the 
serious, ])ernianent, menace, inij)eriling the i)osition of 
tlie "Big 4," the lO-cent cigarette. 

How the poor little retailer was and may be used 
in this manner can best be determined by the examina- 
tion of the Federal Trade Commission's report on the 
tobacco industry for the year l!)29-l!KiO. This report 
was signed by Mr. Charles F. March, chairman of the 
Federal Trade Commission. After reading the report, 
you may draw your own ccjuclusions. Keference is 
made to this report in tlie brief submitted by the pro- 
]»onents of this Code. It being a juiblic record, 1 as- 
sume it may be considered a part of this record without 
s])ecifically reading or offering a copy thereof in evi- 
tlence. 

The tobacco products most generally used as loss- 
leaders are the j>o))ular brands of 15-cent cigarettes — 
those commonly known as the '*lVig 4"; the wholesale 
price list of these cigarettes to the retailer is 11 cents 
a package. The wholesalers or jobbers who distribute 
these cigarettes to the retailers are allowed a factory 
discount of 10 ]>er cent and 2 per cent. For several 
years last juist this has been th<' regular discount of the 
manufacturers to the wholesalers or .job])ers. 

Because of the cut -throat competiti<»n which exists 
in tli<' retail cigarette business, the jobbers have not 
been able to keep the lo ))er cent, and 2 ])er cent, al- 
lowed them from the retailers' wholesale price. The 
jobbers are jnactically compelled to pass their entire 
wholesale discount on to the retailers in order that the 
retailers' gross loss on cigarette sales may be lessened. 
Loss leaders and sjjecial allowances enforce this condi- 
tion upon b<»tli the wholesalers an<l the retailers. 

In these days of loss-leaders and cut-throat com- 
l)etiti(>n, the wholesalers supply the retailers with the 

Tk€ Tobacco World 




Copyright, 1933. B. J. Bcytiolds Tobacco Company 



Steady Smokers turn to Camels 



You've often seen his name and picture 
in the papers— Jaffee, the city-bred 
boy from the U. S. A. who beat the 
best Olympic skaters that Europe had 
to offer, and laecame the skating cham- 
pion of the world! Speaking of speed 
skating and cigarettes, Jaffee says: 
"It takes healthy nerves and plenty of 
wind to be an Olympic skating cham- 
pion. 1 find that Camels, because of 



their costlier tobaccos, are mild and 
likable in taste. And, what is even 
more important to a champion athlete, 
they never upset the nerves." 

Change to Camels and note the 
difference in your nerves... in the 
pleasure you get from smoking ! 
Camels are milder. ..have a better 
taste. They never upset your nerves. 
Begin today! 



HOW ARE 
YOUR NERVES r 

TRY THIS TEST 





IT IS MORE FUN TO KNOW 

Camels are made from finer, MORE EXPENSIVE 
tobaccos than any other popular brand. 



camel's 

COSTUER 
TOBACCOS 




Draw a line 20 inches long on the edge 
of a newspaper. Stick a straight pin in 
the exact center. Place a forefinger on 
either side of the pin. Close your eyes 
. . . try to measure off quickly the dis- 
tances by moving both hands at the 
same time. Have a watcher stop you 
when you reach the edge. See if both 
your fingers have moved the same dis- 
tance. Most people try this at least six 
times before both hands come out evenly . 

Frank CrilUy (Camel smoker), famoua 

deep'tea diver, completed the te<t 

on hia tecond try. 



NEVER GET ON 
YOUR NERVES 

NEVER TIRE 

YOUR TASTE 



January i, 19J4 



Big 4 brands of cigarettes at 11 cents a package, 
less 10 per cent, and 1 per cent, or 9.8 cents tlie package. 
On these sales of cigarettes to the retailers the whole- 
salers make a gross margin of 1 per cent, on their turn- 
over. This price is delivered on credit. 

The retailer tobacconists cannot continue to meet 
the many types of predatory c()nii)etilion confrontino- 
them today. The loss-leader competition is the mean"^ 
est and most deadly of them all. Stores such as grocery 
or department stores which depend upon other lines 
of merchandise for protit and wliich, because of their 
protection against loss by confidential or special allow^- 
ances, use cigarettes and other tobacco products as a 
come-on, or bait, to lure trailic to them, have sent thou- 
sands of retail tobacconists to tlie wall, and have de- 
stroyed the good-will value of manv a once-popular 
brand ot tobacco products. 

When a retailer commences to slip financially for 
lack ot profits on popular-branded merchandise— his 
only recourse is substitution— this he does the best he 
can, but his opportunities are indeed scant. 

The only way a retailer can exist is bv making his 
selling expense and a suflicient net i)rofit to live Noth- 
ing Irom nothing leaves nothing. Something sub- 
tracted Irom nothing leaves a minus (luantity, and a 
minus (luantity is less tlian nothim.-. A constant, less 
han notlimg income calls for a progressive dissipa- 
tion of capital, and eventually insolvency. To save 
themselves irom entire loss on their turn-over, the re- 
taders tried to gain a compensating mar-in on other 
witrfh//T^"'^''i^^"- "»^*«^'t""ately, this\loes not go 
r.lh i? ^,^ ;^3^^o,»^"^>n^'^^' as you see, because pracU- 
arJicleJI "^ '''''' ^''^'^^"^" ^'^ trade-marked 

«hnnn h "^"'""-f ""V^^" ^'^^^' individual tobacco stores 
should be c.)nsider(Hl as wages tor their owners, and as 

as the a' a P^^'^* ''" "" minimum wage for labor, and 
as xne^ A. A. endeavors to protect tlio farmer even 
against foreclosure ui)on his farm, so should vou an 
prove pro ect. on for the small capital an lvalues of 
the individual storekeejjer. >^<*»tb oi 

♦ Jn. ^i"^"'.'",!''' ^' protected from the loss-leader prac 

:' f *^'^"*- JV^'^" <■'" "">-^t I'niei^.nt storekeepers re 
port a., opera ,,,ff expense in excess of 20 pe^r cent 

llsiissssis 

Ruided bv theCe renorts' .,. V '''''°""'''' ''^'•'' ^««n 

properly .„p|fe, „i. offorl.'li'hi. bS^, " * "^ 

Price-Cutters 



any system of price regulation. Their principle motive 
IS to further or protect their own selfish interests. In 

n- i,- ^'"* ?*"'■<' <^'"""s the practice of under- 
selling all competitors on popular branded articles 

nfn:!/r!: "'" "r '"^^ ^mrettes as lotv as the cos 
of the revenue stamp or six cents a package. No mat- 
ter how low he price is slashed, this concern always 
sells the oustanding leaders for less. Upon proper 
investigation ,t will be found this policf of semnJ 
lor less, IS the old loss-leader practice. ° 

during the hearing given the General Retail Code 
last August, Major Benjamin 11. Namm read "nto the 
record an advertisement which this concern caused to 
be published on August 14, 1930. It read in mrt «^ 

a cSn •' ^^fA?;^7 ->'l <;ifa-«- - low asVKnt 
-nl. , 7, i*' ''"'■" "?]'• *1" smoka.lors for $2.24" 

U^ese ,w if ^"'""'"'^ ♦'"»* ^^"« ""'de money on 
tlie.se Items. If you were a customer, you boudit this 
uerchand.se at less than cost." In commentS upon 
this adverti.sement. Major Xamm stated: "ThefcTn 
oral underselling claims are never true. They ahvavs 
sumer." "''' ""P'-«««io« i" tl-e mind of The con! 

This concern also advertises that efficient onera 
tion niakes possible its low-cut prices AVI„t\?£) ^ 
cfliciency is it which permits selH, g aHicie for 6 cJnTs 
retail, winch costs 1] cents wholesale, and when tie 

1 r y\, ^^ ^"^''" ^fficiencv w II take Ymi xvui 

Prico.,r,,,!:?ii,';,,?tS 'rcr'^'- ■"» 

Riven as a .savin- on stn. /inrlt li .• ^""^^ P^""^ 
usuallv matched bv (wo nnli-' '"^^^'-''sed goods is 
'.amed or unbTaSed K^"' '" ""'^"'^ P'-'««« «" ^n- 

Eve^IlL'knowrthe're' • """^'l"' '" " ■""''"<> fashion. 
jramearUst, vet tie police Zil'l"'" !^ ^"^ '^' «hell 
or he wouIdVuin eCv l"ir ^^1 '"^ "" ^^^ "^o^e 
^tand. J.et the suckerTitf in'"**' ''"•'"'"'''' '"'" ^'^ 
they lose 90 per cent T ,1 ' 'J?'" •"""*• "^ ^^e time, 
by the busine.s^s pirate; wZcnn " F",'™ P™^"'*^"*! 
prices, even thougl an ac'^ual loss '*''l"' ''*"'^*'" 
then , indue profit^ oroo-^cir oHela^SS 

false^pTete'nTsWem^oT"" """f' "^""'t *hat such a 
a blight when the fair i?"""'''"'' ^'"^^^ ^'i" "uffcr 
Chance to show'l'LS SeTo^ ^S^^^l^Ji 

Tht Tobacco World 



the goods he sells. Any reasonable person must see 
that a fair price on all goods will mean lower prices 
to consumers when total purchases are considered. 
This is why the notorious price-cutters so conscien- 
tiously support the idea of the consumer enjoying loss- 
leaders. 

Small Manufacturer 

The small manufacturer will continue to pass out 
of the industry unless the merchandising provisions in 
the retail tobacco dealers' code are maintained. 

The small manufacturers cannot compete with the 
present day cut-throat scheme of merchandising. No 
small manufacturers can hope to sell their regular 
priced products in competition with the popular-adver- 
tised brands of large manufacturers, when these pop- 
ular brands are sold as loss-leaders, i. e., the small 
manufacturers' 10-cent cigar, will not sell when the 
popular two for 25 cents cigars are generally cut to 
10 cents. 

To illustrate, the small manufacturer may offer 
his regular 10-cent cigar to the retailer at as high a 
price as 8 cents apiece, and it may be excellent value 
for the price, but certainly no one could expect it to 
compete with an advertised brand for which the retail 
dealer paid 91/2 cents apiece. When the two for 25 
cents cigars are reduced to 10 cents, the small manu- 
facturers' regular 10-cent cigars are cast aside and 
will not sell. As long as this type of competition ex- 
ists, no salesmanship or merchandise ingenuity can 
equalize the difference. No competing product can 
hope to live against the loss leader. This illustration 
w;as made of the 10-cent cigar and the two for 25 cents 
cigars; it may be applied with equal success to cigars 
in any other price range, also to tobacco and ciga- 
rettes. 

The elimination of indiscriminate price-cutting, 
and the loss-leader practice is the only action which 
will save the small manufacturer as well as the re- 
tailer. 

The tobacco industry, suffers more from the loss- 
leader practice than any other industry, because to- 
bacco products are always sold under brand names, 
in packages easy to handle, and no large investment 
is required to stock a few of the leaders and offer them 
at cut-prices. Popular brands of tobacco products are 
today being used by every imaginable kind of retail 
outlet to pull patronage. Within the past few wrecks, 
a large chain of circulating libraries adopted ciga- 
rettes as a loss-leader. The idea is growing daily 
and the retail tobacconists' problem is becoming more 
tangled each hour. The retail tobacconists' Code must 
allow something to correct this deplorable condition, 
or the entire tobacco industry will continue a sea upon 
which commercial pirates may sail their craft wuth 
impunity and with license to slaughter innocent hard- 
w^orking little merchants. Even the Blue Eagle will 
w^alk the plank and in the place of this noble and hope- 
ful standard, the retail tobacconists of this country 
will visualize a Skull and Cross Bones upon a Black 
Field—will prepare to expect **No Quarter" from the 
New Deal, and in their hearts there will be engendered 
revolt and opposition against it, and in the heart which 
might have been occupied with that Godlv and humane 
philosophy of— ** Live and Let Live"— there w^ill be 
implanted the spirit of the business freebooter and the 
trade racketeer — and all the innocents in the tobacco 
business will suffer more than even before N. R. A. 
and A. A. A. came into being. 

January j, /pj^ 




Hold Hearing on Agreement for Burley Tobacco 

Agreement 

UBLIC hearing w^as held December 21st at the 
Lafayette Hotel in Washington on a proposed 
marketing agreement for buyers of Burley to- 
bacco, under which the contracting buvers 
would agree to purchase not less than 260,000,000 
})ounds of the 1933 Burley crop at an average price of 
not less than 12 cents per pound, or else to pay to the 
Secretary of Agriculture the difference between an 
average price of 12 cents a pound, and any lower price 
actually paid. 

Under the agreement, any money so received by 
the Secretary of Agriculture w^ould be distributed 
among growers of Burley tobacco according to any 
method which he might adopt. 

All leading buyers of Burley tobacco were repre- 
sented at the hearing. Xo opposition to the proposed 
agreement was expressed. It was pointed out that 
the agreement would have to be backed by the full 
support of growers to the program for reducing pro- 
duction in 1934. J. B. llutson, chief of the tobacco 
section of the Agricultural Adjustment Administra- 
tion, stated at the hearing that the proposed agree- 
ment was worked out in co-operation with representa- 
tives of the tobacco industry, and *'is proposed for and 
in ])ehalf of the Secretary of Agriculture without preju- 
dice or commitment and is subject to modifications." 

W. G. Finn, of the Bureau of Agricultural Eco- 
nomics, asserted that an agreement would do much "to 
bring about greater stability of market prices and lead 
to an orderly marketing of the present large crop of 
Burlev tobacco." He cited the fact that the Burlev 
tobacco markets have been closed because of low prices 
and that during this market holiday, growers are sign- 
ing contracts to reduce production in 1934. "In view 
of this reduction they should be entitled to fair prices 
for the 1933 crop," he said, "and a marketing agree- 
ment should make possible a more satisfactory level of 
prices for this year's crop." 

The following companies, buyers of about 90 per 
cent, of the Burley tobacco used for domestic manu- 
facture in the United States, would be the contracting 
buyers under the proposed agreement: 

The American Tobacco Co., Axton-Fisher Tobacco 
Co., Inc., Brown & Williamson Tobacco Corp., (Conti- 
nental Tobacco Corp., Philip Morris Co., Larus & Bro. 
Co., Liggett & Myers Tobacco Co., P. Lorillard & Co., 
Inc., K. J. Beynolds Tobacco Co., and the United 
States Tobacco Co., Inc. 

The following appearances were made at the hear- 
ing: W. R. Perkins, representing P. Lorillard & Co.; 
W. W. Flowers, vice-president, Liggett & Myers; M. A. 
Broswell, counsel, R. J. Reynolds ; Paul M. Hann, vice- 
jnesident, American Tobacco Co.; Charles F. Xeiley, 
vice-president American Tobacco Co.; (J. II. Hummel, 
vice-president, P. Lorillard; J. W. Andrews, vice-presi- 
dent, Liggett & Myers: F. L. Fuller, counsel, Liggett & 
Myers; J. W. Abbott, auditor. United States Tobacco 
Co.; V\. (\ Harrison, P]xport Leaf Tobacco Co.; N. F. 
Brant of Paris, Ky.; Wirt IT. Hatcher, Philip Morris 
Co., and Continental Tobacco Corp.; Frank C. Taylor, 
secretary-treasurer, Burley Tobacco Growers Co-oper- 
ative Association, Lexington, Ky. ; James C. Stone, 
Lexington, Ky. ; T. M. Anderson, Jr., Kx]iort Leaf To- 
bacco Co.; H. M. Robertson, counsel, Brown-William- 
son; R. D. Noland, Burley Toliacco Growers of North 
Carolina; Senator Alben M. Barkley and Representa- 
tive Fred M. Vinson, both of Kentucky. 



Heating Plant Beds Controls Blue Mold 



I 




i 



EATIXCi tobacco ])laiit bods to tompcratures 
near 70 degrees F. at night I'or two to three 
weeks gave control of the ]>hie niokl disease 
in experiments by the V. S. ])ei)artnient of 
Agriculture last si)riiig and again this fall. Speaking 
before the American Association for the Advancement 
of Science at l>oston on Friday (December 21)), Dr. 
E. E. Clayton of the Bureau of JMant Industry re- 
viewed the history of the disease in this country and 
explained how he, in co-operation with Mr. J. G. Gaines 
who worked at the Coastal l*lains Experiment Station, 
Tifton, Ga., have been alile to grow plants in heated 
beds while plants in unheated beds alongside were so 
badly diseased as to be worthless. 

The blue mokl disease, known to scientists as 
downy mildew, iirst became a serious threat to tobacco 
growers in liKV2. That year it was so severe that, even 
after they had their land prepareil for tobacco, many 
farmers were unable to get phuits at auy i)rice. Others 
were forced to set plants late, with the result tliat their 
crops Avere of low tpudity. In 1!):].'} the disease spread 
to new areas, but because of weather conditions, did not 
cause as nnich damage as in llKJl'. 

Studies by Dr. Clayton and others in the depart- 
ment revealed that blue mold caused widespread dam- 
age only in years when there were j)eriotls of several 
weeks when tlie minimum temperature liovered be- 
tween 50 to ().5 degiees, with intervals of damp, foggy 
weather. Such weather conditions are most likely lo 
prevail during the last two or three weeks before* the 
plants are old enough to transplant. In such years 
plants that survive the llrst attack are frequently so 
weakened by later attacks that they die when trans- 
planted. This period was relatively short last season 
and the warm weather that followed stopped the spread 
of the disease. 

Taking their cue from these observations, the De- 
partment investigators, woiking in co-operation with 
the State experiment stations, decided to give their 
beds an "early summer" by arliiicial heat. The idea 
worked in every case, even though the heated beds had 
been inoculated with the disease. Various types of 
heating ecpiipment have been used. Init the icsidts are 
the same. 

In his mo>t lecent tests Dr. Clayton airanged to 
have beds keiit at controlled tem])eratures at night to 
discover the jioint at which the disease was checked. 
No effort was made to contr(»l temperatures in the day. 
Four sets of beds were used. In the llrst the tempera- 
ture was kept between btl-fM: in tlie second, ('h)-7(); in 
the third, 70-75; and in tlie fourth, 75-80. Unheated 
jjlots alongside served as checks. 

The mildew appeared in its most destructive form 
in the unheated areas, with all the jilants severely in- 
jured, Dr. Clayton i-eports. It was also very severe in 
the 60-65 beds and less serious at 65-70. There was 
only a trace of disease with no damage whatever at 
70-75 and 75-80. At the beginning of the experiment 
all bed- were inocuIate<l with the disease, but at the 
higher temperatures the disease faile<l to develop and 
spread. 

The heating tests will bo continued this year at 
Arlington Farm, and also in co-operation with the 
Coastal Plains Station,Tifton,Ga.; th«' Tobacco Station, 
Oxford, N. C.; Pee Dee Experiment Station, Florence, 
S. C. ; and the Tobacco Station, Greenville, Tenn. These 

J4 




expei'iments will seek to find the most practical type of 
heating ecjuipment for general farm use. So far oil 
heaters have shown most i)romise. The electrical hot- 
bed heating e(pii})ment now used in some hotbeds and 
greenhouses gave excellent lesults, but this metliod is 
limited to farmers who have access to electrical j^ower. 
In their tests the Dej)artment workers have used 
glass covering on their plant beds to prevent the escape 
of th(^ heat. This si>ring they will try heavy cloth 
covers. It is obvious, says Di-. Clayton* that the thin 
cloth commoidy used for tol)acco beds in the South will 
not be satisfactorv. 

Elforts to control blue mold by seed treatment, 
spraying seed bed sterilization, or the location of beds 
in remote areas have failed. Even a bed located on an 
island where no tobacco was grown contracted the dis- 
ease, and beds constructed from new material, sown 
with seed known to be disease free, and located in dense 
woods on virgin soil develo])ed the disease just as early 
as the ordinarv beds in the localitv. 

Announce Program for Maryland Tobacco 

Growers 

PIiODCi 'TIOX adjustment juogram for Mary- 
land tobacco, tyi)e 'A'2, und"r which producers 
of certain grades would reduce their PKU crop 
by 25 per cent, of their base tobacco acreage 
and l»ase tobacco ])roduction, was amiounced last week 
by the Agricultural Adjustment Administration. 

It is estimated that about 40 per cent, of the Mary- 
land tobacco growers will find it advantaucous to take 
part in the jirogram, the main object of which is to 
re<luce ])roduction of the lower grades and im})rove the 
general jirice for this type of tobacco, Kental and 
benefit ])ayment to growers who take part are expected 
to total about $140,000. 

A rental jiayment of ^2i) for (»ach acre taken out of 
pro(lucti(m as stijmlated in the agreement would be 
made to ]>articipating growers before March 15, 1934, 
or not more than thirty days after the Secretary of 
Agriculture has accepted the agreements. In addition 
there would be an adjustment ])ayment, based largely 
on the sales value of the 1!KU crop, which would go to 
jiarticipating growers after Decembei- 1. 1IK55, and after 
they had j)resented ])roof of compliance with the terms 
of the reduction agreement. 

Growers wh<> sign agreements automatically be- 
come members of tobacc<i control associations in their 
own counties, the purpost* of which will be to handle 
administrative details of the program. The cost of 
operating the county associations will be paid pro rata 
by the members. 

The agreement provides for division of rental and 
adjustment payments with tenants as their interest 
may appear. It specifies the us«» which nuiy !)e made of 
land taken out of production. The lu'oduction of basic 
conunodities on a ur(»\ver's farm in VXU is limited, 
under the terms of the auMN-enient, to not more than that 
of 1932 or 1933. 

Tlie reduction agreement runs with the land. A 
provision in the agreement gives the Secretary of 
Agriculture the privil«'«j:e of reipdring in 1935 a reduc- 
tion not exceeding 30 ]>er cent, of a grower's base to- 
bacco acreage and base tobacco production. 

The Tobacco World 



Flue-Cured Tobacco Return 

(Covfinucrl from page 7) 

U]) to December 1st, growers had received $89,026,- 
741 for 5i)5,032,046 ])ounds marketed, out of the total 
1933 cro}). The average price from the time the 
markets ()j)ened in August to December 1st, was 15.11 
cents per i)ound. The aveiage price ])er jjound for the 
whole 1932 crop was 11.73 cents; for the 1!)31 crop it 
was 8.67 cents. The avei*age for the 19.*)*) season is 
expected to be somewhat higher as there is moi-e to- 
bacco to be sold and prices now are materially higher 
than they were when the markets o])ened. 

**Tlie improvement in the flue-cured tobacco 
situation that has been nuule thus far through the co- 
operation of growers and buyers with the Agricultural 
Adjustment Administration, must be carried into the 
next crop years," Mi*. I hit son said. "Last September 
growers decided that they would act to help them- 
selves. They signed the preliminary agreements to 
reduce ])roduction, undei' a i)rogiam which has since 
been announced. The reduction ])rogram and the pre- 
liminary reduction ])ledges made ])ossible the nuiiket- 
ing agreement, which luis been a large factor in im- 
proving the 1933 j)rice situation. 

"Now, throughout the whole tlue-cured toliaceo 
belt, grrjwers are signing the formal reduction agree- 
ments which <iualify them for ])ayments. The ])rograni 
for lifting ])iMces »>f Hue-cured tobacco by adjusting ]no- 
duction and making compensation ])ayments to these 
growers who tjike part, is an outright business ])ropo- 
bition. 

**Oidy the growers are in position to decide 
whether they are willing to help themselves. The 95 
per cent, sign-uj) (»f the ])reliminary reduction agree- 
ments last September indicated that they are willing 
to help themselves. .V comjilete siy:n-u]) of the formal 
agreements now available is necessary for a successful 
consumation of the Hue-cured tobacco adjustment pro- 



gram. 



> » 




Tobacco Employment Up 

MPLOY^rENT in the tobacco industry for 
October, 1933, as shown by re]>orts of the Bu- 
reau of Labor Statistics, IT. S. De|)artment of 
Labor, has just been made public. Chewing 
and smoking tobacco and snutT factories, 30 report- 
ing, had 9,491 on their ])ay rolls during the month, 
which was an increase of 2.4 per cent, over Septend)er, 
1933, and a gain of 2.1 ])er cent, over October, 1932. 
These same t'actories had iiayndls amounting to $130,- 
914 during October, 1933, practically the same as those 
of SeptenduM", 1933, but a gain of 5 per cent, over Oc- 
tober, i:>:52. 

Cigar and cigarette factories, 208 reporting, had 
46,407 on tln'ir payrolls during October, 1!)33, a gain 
of 5.1 ]H>r {«'nt. over September, 1933, but a decline 
of 2.9 per cent. fr<»m Octoijer, 1!>32. These same tirms 
had juiyrolls amounting to $(»50,04S during October, 
1933, a gain of 7.2 per cent, over Septend)er, 1933, and 
a gain of 5.8 per cent, ovei* October, 1I>32. 

Employment in chewing and smoking tobacco and 
snuiT factories during October, WKV.], was at 91.7 ])er 
cent., and in cigar and cigarette factories at 69.8 per 
cent. 

January i, Kjjf 





URIEL 



CIGAR 



Full 
Size 





5^ 



Long 
Filler 



Exceptional cigar 
quality for a nickel 



Other sizes 

Lonf^felluws .... 3 for 25^ 

Perfecto* UK 

Aristocrats 2 for 25^ 



Mfd. br p. LOIILLABD CO., INC. 




TOBACCO TRADE ORGANIZATIONS 

TOBACCO MERCHANTS ASSOCIATION 
OF UNITED STATES 

JESSE A. BLOCH. Wheeling. W. Va Preiident 

CHARLES J. EISENLOHR. Philadelphia, Pa Ex-Presideot 

JULIUS LICHTENSTEIN. New York. N. Y Vice-President 

WILLIAM BEST. New York. N. Y Chairman Executive Committee 

MAJ. GEORGE W. HILL. New York. N. Y Vice-President 

GEORGE H. HUMMELL. New York. N. Y Vice-President 

H. H. SHELTON. Washington. D. C Vice-President 

WILLIAM T. REED. Richmond, Va Vice-President 

HARVEY L. HIRST, Philadelphia, Pa Vice-President 

ASA LEMLEIN. New York, N. Y Treasurer 

CHARLES DUSHKIND, New York, N. Y Counsel and Managing Director 

Headquarters, 341 Madison Ave., New York City 

ALLIED TOBACCO LEAGUE OF AMERICA 

W. D. SPALDING. Cincinnati. Ohio President 

CHAS. B. WITTROCK. Cincinnati, Ohio Vice-President 

GEO. S. ENGEL, Covington, Ky Treasurer 

WM. S. GOLDENBURG, Cincinnati, Ohio SecreUry 

ASSOOATED CIGAR MFRS. AND LEAF TOBACCO DEALERS 

JOHN H. DUYS. New York City President 

MILTON RANCK, Lancaster, Pa First Vice-Presider.» 

D. EMIL KLEIN, New York City Second Vice-President 

LEE SAMUELS, New York City Secretary -Treasurer 

NATIONAL BOARD OF TOBACCO SALESMEN'S 

ASSOCIATIONS 

JACK A. MARTIN, Newark, N. J President 

ALBERT FREEMAN. New York, N. Y First Vice-President 

IRVEN M. MOSS. Trenton, N. J Second Vice-President 

ABE BROWN, 180 Grumman Ave., Newark, N. J Secretary-Treasurer 

NEW YORK CIGAR MANUFACTURERS' BOARD OF 

TRADE 

ASA LEMLEIN ....President 

SAMUEL WASSERMAN Vice-President 

THE NATIONAL ASSOCIATIONS OF TOBACCO 

DISTRIBUTORS 

C. A. JUST. St. Louis. Mo President 

MAX TACOBOWTTZ. 84 Montgomery St., Jersey City, N. J Secretary 

E. ASBURY DAVIS, Baltimore. Md Vice-President 

E. W. HARRIS. Indianapolis, Ind Vice-President 

JONATHAN VIPOND. Scranton, Pa Vice-President 

GEO. B. SCRAMBLING, Cleveland, Ohio Treasurer 



15 



1 

I 

II 




pMIbADEl2«>IiIA. 




Bayuk Sunshine Club Party 

S AX ENJOYABLE pie-cliinax to the end of a 
]>ros])erous year, several hundred employees 
of Bayuk C'li^ars, Inc., made merry at a Christ- 
mas i)arty on Saturday, December 23d, under 
the auspices of tlie Sunshine Clul). This is an organ- 
ization of the Bayuk workers, nmtually helpful in char- 
acter. There was a Christmas tree, and Santa Claus, 
in the person of the rotund Frank Dalski, distributed 
«:ifts. Morris Worman. ])resident of the Sunshine Club, 
made a talk at the luncheon which followed, expatiating 
on the orii»in and purposes of the club. Executives 
were in attendance at the sunshine i)arty, as well as at 
a later holiday uathcrini»- in the everjrreen-decorated 
foyer, with their own Christmas tree and their own gift 
distribution. The real climax to the business year 
started on AVcdnesday, DectMuber 27th, and continued 
for the followinu' two davs — the annual Bavuk conven- 
tion, which broimht P>ayuk men into headquarters from 
all parts of the country. 



Yahn & ^fcDonnell Ci^rars, (!17 Chestnut Street, the 
lari^est distributor of ciirars and tobacco ])roducts, and 
operator of a larire chain of liiLrh-grade hotel, office 
buildinu" and club cigar stands in Philadelphia and 
vicinity, re])ort a fine call for their brands for the holi- 
day trade tar exceeding that of the i)revious year, and 
also far l»eyond their exj)ectations. Yahn & ^IcDonnell 
are the local distrilmtors of the Corona and other Inter- 
national Brands of tlie Ilenrv Clav i^- Bock and Co., 
Optimo and Blackstone, and many other well-known 
domestic l)rands, and those mentioned enjoyed a heavy 
demand and to])ped the list. Among smoking tobaccos, 
Briggs Mixture, y)roduct of the P. Lorillard Company, 
experienced a demand so far beyond their anticipation 
that wires were disjiatched to various parts of the coun- 
try in an efTort to secure an additional supply of the 
eight-ounce and sixteen-ounce packages. Among their 
controlled brands, the As You Like It and the Marcello 
topped the list with a splendid volume of sales. All in 
all, the year just closed was a considerable improve- 
ment over the previous one. 



Abe Caro, the Optimo ambassador, paid a visit 
to the local distributors of the brand (Yahn & McDon- 
n<'ll) last week. 



Trade Notes 



According to reports from retailers, wholesalers 
and manufacturers of tobacco products in this city, the 
1933 holiday season just closed was a ])Ieasant surprise 
to all. There was more evidence of ready cash apparent 
and purchasers were in much better spirits tlian in the 
past few years. Business generally in the cigar and 
tobacco industry here was very good. 



The Penlo Cigar Company, formerly located at 
Seventh and Cherry Streets, has leased the building 
formerly occupied by the Louis King Cigar Company 
on South Third Street, and the buildinu: is now being 
remodeled preparatory to the moving of their manufac- 
turing unit to that new location. 



Grabosky Bros. Inc., North Second Street, manu- 
facturers of the Koyalist cigar, report a most wonder- 
ful holiday business, so far l)eyond their expectations 
that they were operating their manufacturing depart- 
ment during the past week, an unusual experience in 
the cigar manufacturing industry during tlie past few 
years. Grabosky Bros., Inc., is a com|KirativeIy new 
firm in the numufacturing industry, but their brand has 
gained a host of friends in the sjiort time it has been 
on the market, and they report tliat the year just closed 
was the best they have experienced. 



i6 



John AVagner & Sons, importers and distributors 
of tobacco products, 233 Dock Street, report an excel- 
lent volume of Christmas business, an<l have just closed 
one of their best years in their cigar dejiartment. Im- 
ported cigars recorded a substantial gain during the 
holiday season over last year's business, and among 
those imported brands distril)ute<l by the Wairner 
House, Romeo y Julieta were at the head of the list. 
Some sizes of this brand were entirely exhausted last 
week. Among the high-gra<le domesUc brands, Don 
Sebastian and (Jarcia y ^'«■-ca brands were the lenders; 
and among the controlied brands of the Waicner House, 
^fonticello and Wagner brands enjoyed a splendid de- 
mand. On their Monticello and Wagner #3 brands of 
smoking tobacco, the demand so far <'xceeded their ex- 
pectations that they were forced to wire for additional 
express shipments in order to satisfy the demand. 

Tht Tobacco World 



Did you say 
MODEL? 




PIPE -READY 



\bsj said 

MODEL 




SMOKING 
TOBACCO 



COMMON SENSE 




York County Banquet Usual Success 

HE Annnal Banquet of the York County Cigar 
^fanufacturers Association was held at the 
Yorktowne Hotel, York, Pa., on December 7th, 
and was voted a complete success by those in 
charge of the arrangements, as w^ell as the guests. 
About 200 guests were present and they were treated 
to the usual famous York County dinner of roast tur- 
key with all the trinnn'nrs. During the course of the 
dinner the guests were entertained by the Red Lion 
Orchestra. 

Congressman TTarry L. Haines, and T. E. BrooTcs, 
president of the York County Cigar Manufacturers 
Association, were the principal speakers of the eve- 
ning. 

Congressman Haines addressed the guests on the 
subject of the Code of Ethics which is in process for 
the cigar manufacturing industry, and stressed, the 
need of co-operation and the practice of the Golden 
Kule at this time as being necessary for the attain- 
ment of those results most desired, and which would 
be of tremendous value to the industry. He also ex- 
pressed himself as being opposed to the proposed 
thirty-hour week. 

Mr. Brooks reviewed the activities of the Asso- 
ciation during the past year. 



Sends Cigars to President 

John A. Campbell, of the Autokraft Box Corp., 
Detroit branch, was a visitor in Philadelphia on Decem- 
ber Kith, attending the meeting of the cigar container 
industry for the purpose of electing the Code authority 
fur tliai industry, and while here dispatched to Presi- 
dent Hoosevelt, through E. B. Shultz, Deputy Admin- 
istrator in the National Recovery Administration, a 
handsome box of Webster cigars with the President's 
name embossed thereon. 



Philadelphians at Washington 

Among Philadeli)hians prominent in retail and 
wholesale tobacco products circles who attended the 
public hearing on the retail and wholesale Tobacco 
Code in Washington on December 15th and 16th were 
George Jones, of Yahn & McDonnell Cigars; George 
Frings, of Frings Bros., S. M. Blumenthal; and Daniel 
Ilertman, Morris Levitone, Israel Stiefel and William 
Waschler, representing the Retail Cigar Stores Asso- 
ciation of Philadelphia. 

January i, igs4 




Retail and Wholesale Code Hearing 

X December 15th and 16th the public hearing 
on the proposed Code of Fair Com])etition for 
the wholesale and retail tol)acco dealers, was 
held in Washington, and considerable prog- 
ress was made toward the speedy approval of this 
Code. The hearing w^as well attended by representa- 
tive men in the industry from all parts of the country. 

Siegfried Hartman, counsel for the National As- 
sociation of Tobacco Dealers, and the Retail Tobacco 
Dealers Association of America, Inc., spoke on behalf 
of the thousands of retailers and distributors in the 
country who are fighting to maintain their existence, 
and pointed out that the adoption of the provisions 
of this Code w-as vitally necessary to this group. 

During the course of the hearing it was pointed 
out by Administration authorities that a provision to 
effectuate the purposes of the A. A. A. had been 
omitted from the proposed Code, and it was agreed 
that this would be immediatelv corrected. 

Those most activ^e in the preparation of the Code 
were highly complimented on their work, and partic- 
ularly on their fine spirit of fairness with labor. 

With the hearing concluded, dilTerences of opinion 
will be adjusted, and the Code will be pushed through 
to its final approval by President Roosevelt just as 
quickly as possible. 




Warehouse Code Hearing 

UBLIC hearing on a code of fair competition 
for the auction and looseleaf Tobacco Indus- 
try was held at the Lafayette Hotel in Wash- 
ington, D. C.., December 28. The Code w\as 
submitted by the National Association of Auction and 
Looseleaf Warehouse Associations. Because of the 
closed auction markets for tobacco, an emergency was 
declared in the notice of hearing and less than ten 
days time was allowed. 

The Code includes wage and labor provisions and 
provisions relating to brokerage charges and other fees 
charged in the handling of the tobacco. It calls for the 
establishment of a supervisory body of eleven mem- 
bers. Ten of the members would be chosen by the in- 
dustry itself, on a regional basis, and the eleventh 
would be elected by the other ten. 

The Code applies to warehouses in North Caro- 
lina, South Carolina, Georgia, Florida, Alabama, Ten- 
nessee, Kentucky, Virginia, West Virginia and Mary- 
land. 

IT 



Established 1886 



"BEST OF THE BEST" 




MaBufaictur«> 



i^ A. SANTAELLA & CO. 



Office, 1181 Broadway, New York City 

FACTORIES: Tampa and Kep West, Florida 



OUR HIGH-GRADE NON-EVAPORATINO 

CIGAR FLAVORS 

Make tobacco meUow and smooth In character 
and Impart a most palatable flavor 

FUVORS FOR SMOKING and CHEWING TOBACCO 

Write for List of Flavors for Special Brands 
BKTUN. AIOMATIZEI. BOX FLAVORS. PASTE SWEETENEKS 

FRIES & BRO., 92 Reode Street. New York 



Classified Column 

The rate for this column it three cents (3c.) a word, with 
a minimum charge of seventy-five cents (75c ) payable 
strictly in advance. 




POSITION WANTED 



CIGAR SALESMAN COVERING EASTERN PENNSYLVA- 
NIA and Local Territory desires connection. Large following. 
Address Box No. 580, "The Tobacco World." 



Newspaper and magazine advertising executive, thoroughly 
experienced, formerly with local newspapers and agencies, and also 
advertismg manager. Position with firm desiring an advertising man, 
salesman or assistant to manager. Knows marketing, merchandis- 
mg and distribution. Salary not as important as opportunity to 
demonstrate actual worth and ability. References the highest. 
Address, F. H. Riordan, 5915 Webster Street, Philadelphia, Pa. 

CIGAR FACTORY SUPERINTENDENT. MORE THAN 20 
Years' Experience With One of the Largest Manufacturers. 
Hand work or automatic machines. Address Box 560, care of "The 
Tobacco World." 



FOR RENT 



OFFICE AND FLOORS FOR CIGAR MANUFACTURING OR 
STORAGE— No parking restrictions; good location; low rent; 
freight elevator and loading platform. Will divide. Metals Coating 
Company of America, 495 North Third Street, Philadelphia 



HAVANA CIGARS 



T r^v?L^'^"^^'^ CIGARS, IS LIKE KISSING WITHOUT 

„^ e ~^?°P* ^' ^°"'' ^^'*»^"' "^'^^ yo"*- beer, but love your ci- 

gars. Specially those Havana blended, "Good to the last Puff " 

^ufactured by A. Ramirez & Co., Post Office Box 1168. Tampk, 

fla. Write them for particulars today. 



Tobacco Merchants' Association 
Registration Bureau, StV^YokT cfe 

Schedule of Rates for Trade-Mark Services 
Effective April 1, 1916. 

Registration, (see Note A), $5.00 
bearch, (see Note B), l.OO 

1 ransf er, o 00 

Duplicate Certificate, 2 oo 

than ten m\tulThV"ets than'twL^t^'Jie Pn"''***V.*J^* 'T^'^' «' »°« 
Dollar ($1.00) will be made If ft n™^^ i^'^' *" •dditional charge of One 
(20) title,, buf less tff ihir y one nn In'iSn-:*'^'^'"? °^ "^S*^ ^^.n twenty 
($2.00) will be made and so an additional .1, ^**'*'?";^' ""^A^V "^ ^wo Dollar. 
2^^J«--0^t^^ ($1.00) will be 

REGISTRATIONS 

"^W ff'rk'^N 7"'''''- '^^" "^^^" J"'> - ''''■ ^'-- Wishny, 
"S7Sfel^^S,,!;rPr- ^-'"--.-33. Geo.Zif- 
"^^""^rr^C^-^fL^ — r ;, 

TRANSFERS 
orr,,lt^ I • 1 ,- • ''> '■'^"'•8' ^':M<.-ecl New York, \. Y. Traiis- 

the rpfrJ^fr-i.it ♦. ♦! \ • """^P- J>'tir<)it. .Mich., successor to 

Docenfb:' ?. I93X "" •'■""'"" ^"^ ^"^'"'^ C°- »^'-". ^^ich.. 

specified |,,ou«h apparently -'. h!.";':,:: rre^^.e^d^ra": 0?^ 
Affil.ated Bureaus, has been in nse by Nathan wlhnvVew York 

^'visl;;.'"^•;.^^-V-"N•"■V.: j^:,:e ?S",^T,'f "-' '"^ -- - m« 

THE STANDARD HAVANAS_10 665 r S T I 

.■ or ci«ar. Re«i.ere„ April I. ^% \^.::,J;^roir'^l 

New \vrk V y""* ' "'""^ 'r"''"'' ="■'""'•<•'' ''V J"'i"» K "rfei" 

^ N>w 'o^k! •^•: ^:: V!;l^;:^:^'^r\^ir '-- '■■"""' Cigars, In"; 

EL GRANDEVO:— 29,791 fTobacco i.eafi and 30 387 (U <; T 
t^^reV):;"-^.!'-,^;, 7"r ^l^-''— "er^o^i^'a,^- M,ac'o.' rT«: 

TSelrVd l'?:t\!oii;;:;;;'\':i^;;;rv-r-^;;;;, ,^i;:- ^'-^ ^ "■ 



**What a welcome visitor 
The Tobacco World 
must be to wholesalers and 
retailers ! 

"If they are only half as 
interested in reading it as 
we ourselves are, we're glad 
our ad is in it regularly** — 

says an advertiser. 



j'-.^.V 



JANUARY 15, 1934 



ECEIVED 




The importance of attractive and dependable containers for 
fine cigars is recognized by the progressive cigar manufacturer. 

Generally the brands that are increasing their goodwill in this 
present analytical market are packed in the new improved 
AUTOKRAFT cigar boxes. 

Cigar Manufacturers who have not investigated the value of 
the merits and economies of the splendid and inviting package 
may obtain complete details promptly by addressing the 

AUTOKRAFT BOX CORPORATION. 



Phi la,, Fa. 
Hanover, Fa, 
Cincinnati, Ohio 



AUTOKRAFT BOX CORPORATION 

Lima Ohio 

A Natioi\Wide Service 



York, Fa. 

Chicago, 111, 

Detroit, Mich. 

Wheeling, W, Va. 




■■ ■■ m 



m^'^/; 



iniiminimiiniiiiimifTTTfTn 




PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA.. PA. 



WOODEN 



Are the Only Natural Humidor for Cigars. 




After all 
nothing satisfies like 
a good cigar ^ 



Pack your cigars in wooden boxes and preserve 
their delicate aroma, mellowness and flavor 
right up to the time they are passed over the 
counter to the customer. 

Discriminating cigar smokers prefer to select 
their favorite brand from a wooden box— and it's 
good business to cater to the dealer and con- 
sumer by packing your cigars in wooden boxes. 



WHEN BUYING CIGARS 

Remember thar Regardless of Price 

THE BEST CIGARS 

ARK PAC3Ua> IN 

WOODEN BOXES 





THE TOBACCO WORLD 



VoL 54 



JANUARY 15. 1933 



No. 2 



The TOBACCO WORLD has signed the President's agreement and 
is operating under NRA Code, gladly and wholeheartedly co-operating to 
the fullest extent in the Adniinistratiotis effort to promote industrial re- 
covery. 



.«jITn the advent of the National Industrial Be- 
\^ covery Act, those industries which did not luive 

a trade association in good functioning order 

immediately began to plan for such an organi- 
zation, and those industries which did have such an 
organization breathed a prayer of thanksgiving that it 
had been preserved through the years of depression 
instead of being allowed to drift into oblivion as so 
many were allowed to do during those years. 

A statement just issued by Wilson Oompton, Chief 
of Trade Associations, National Recovery Adminis- 
tration, is otTered for your careful attention on anotlier 
page of this issue and, we believe, otfers fairly con- 
clusive evidence as to why all members of an industry 
should iimnediately phin to join their trade association 
and co-operate with it to the fullest extent if our hopes 
for a restoration of prosperity are to be realized and 
made permanent. 

Mr. Compton says, **Wliat is going on in America, 
as I view it, is a gigantic struggle between socialism 
and regulated individualism. Uncontrolled individual- 
ism as manifested in the past decade has failed. If 
regulated individualism likewise fails the obvious alter- 
native is socialism in some form, with its supplanting 
of individual initiatives and its suppression of individ- 
ual rights. 

*' There is more at stake than that. 1 do not be- 
lieve that regulated individualism will fail. If it fails 
it will be because direct government regulation, which 
ultimately is necessarily political, will have supplanted 
industrial self -regulation. The National Industrial 
Recovery Act gives industry not only the opportunity 
for self-regulation but, what is more important, the 
enforceable means of making it effective. No great 
industry is acting wisely which does not promptly 
respond to the nation's challenge or which does not de- 
liberately, courageously and in good faith seek to estab- 
lish in this country the right, the etfectiveness, and the 
public dependability of industrial self-government. 

** Trade and industrial associations are the back- 
bone of the system of industrial code government au- 
thorized under the Act and lieing diligently and coura- 
geously developed by the National Recovery Adminis- 
tration.*' 

And so, we urge again, get in touch with your trade 
association immediately whether you are a retailer, 
manufacturer, wholesaler or one of the great army of 
salesmen, and join with them in this great co-operative 
effort for the betterment of each and every one in this 
great country of ours. They need your moral and 
financial support, and the greater the number of mem- 
bers enrolled in each trade association, the greater are 
the possibilities for them to be of great benefit to you 
and your industry. 




DVANCE of cigarette prices from $5.50 to 
$6.10 per thousand is definite, tangible evidence 
of progress in business recovery, not as re- 
gards cigarettes alone but commodities gener- 
ally. The present price closely approaches that of the 
years when cigarettes rose to their highest peaks. They 
were selling at $6.40 per thousand ten years ago, and 
at that price production increased from 1923 to 1927, in 
successive years as follows : Sixty-six billion, 73 billion, 
82 billion, 92 billion, and 100 billion. During the greater 
part of the next two years the price dropped to $6 
and the ])roduction climbed to 108 billion in 1928 and 
122 billion in 1929. Then, back again to the $6.40 figure, 
manufacture reached the staggering total of 123 billion 
in 1930. 

With an increase to $6.85 in June, 1931, sales 
(lro])ped to 117 billion that year and to 106 billion in 
1932. There was a reduction to $6 in January of last 
year, followed by another cut to $5.50 in February, and 
the ])roduction curve turned upwards, showing 111 bil- 
lion for the twelve months ended November 30. 

There is a world of encouragement for all business 
in the return of cigarette prices to a closer approxi- 
mation of the figure at which sales were greatest. And 
there is si)ecific encouragement to the retail tobacconist 
in the thought that this price rise, coming in advance of 
the hoi)ed-for and shortly-expected approval of the Re- 
tail Tobacco Code, will mark a return to the days when 
he shall again become a merchant, with a fair profit on 
his sales, instead of a mere dispenser of service. 

Cj3 Cj3 Cj3 



*«jHEN you are giving thought to this business 
y^^ you are in, do not overlook the fact that in the 
fiscal year of 1933, for w'hich the report has 
just been issued, the tobacco industry paid 
taxes to the (Jovernment amounting to $402,739,059.25, 
the largest single item of revenue with the exception of 
tlu' sales tax, which covers a variety of things, includ- 
ing licjuors, stamp and excise taxes, communications, 
checks, oleomargarine, etc. The tobacco taxes were 
$4,160,440.69, or 1.04 per cent, greater than the collec- 
tions for the previous fiscal year. Tobacco taxes repre- 
sented 24.86 per cent, of the total Internal Revenue col- 
lections of 1933. 



Cigarettes accounted for 81.55 per cent, of the 
total tobacco taxes; tobacco and snuff, 15.36 per cent.; 
cigars, 2.85 per cent.; the remaining .24 per cent, com- 
ing from cigarette papers and miscellaneous items. 
As compared with the previous year, the following ma- 
jor increases or decreases w^ere recorded in collections: 
Cigarettes, increase, $10,885,333.56 (3.43%); large ci- 
s^ars, decrease, $2,902,683.59 (20.43%); manufactured 
tol)acco, $2,579,814.76 (4.45%); snuff, $441,302.00 
(6.45%); cigarette papers, $726,689.11 (44.43%). 



The TOBACCO WORLD (established 1881) is published by Tobacco World Corporation; Hobart B. Hankins, President and Treasurer; 
Gerald B Hankins Secretary Office 236 Chestnut Street, Philadelphia. Pa. Issued on the 1st and 15th of each month. Subscriptions, avail- 
able oni?\?those .;ngag^^^^ industry. $2.00 a ;ear. 20 cents a copy; foreign. $3.50 a year. Entered as second-class mail matter. 

December 22, 1909, at the Post Office, Philadelphia, Pa., under the Act of March 3, 1879. 



Tobacco Conditions Abroad 

Germany— It is stated in the trade that German 
tobacco growers will plant cigarette tobaccos from ac- 
climatized Oriental grades during tlie coming 1933-34 
season, and if the cultivation of these grades of cigar- 
ette tobaccos meets with success, the area under culti- 
vation for tobacco will be extended and thus i)rovide 
additional employment. The German Tobacco Re- 
search Institute expects that the cultivation of tobacco 
free from nicotine or of small nicotine content will 
also be undertaken by tobacco planters during the com- 
ing season. (American Consul W. A. Leonard.) 

Egypt — During the month of Oct()l)er, 1933, as re- 
ported by the Egyptian Government Customs Admin- 
istration* withdrawals of leaf tobacco amounted to 
1,054,409 pounds and manufactured tobacco to 7194 
pounds. Imports of leaf tobacco totaled (5744 bales, 
and exports of cigarettes totaled 70,887 jmunds. Stocks 
of leaf on hand at the end of the month amounted to 
255,070 bales. (American Connnercial Attache Charles 
E. Dickerson, Jr.) 

Greece— The monthly report of Offices for the 
Protection of Greek Tobacco, as reviewed by the To- 
bacco Division, Department of Commerce, shows that, 
out of the 1932 cro]) of 59,305,038 pounds, 50,275,478 
pounds were sold by the end of October, leaving 9,029,- 
560 pounds of that croj) on hand. Owing to the re- 
served attitude of buyers in expectation of the law 
reducing the rate of interest accruing to banks on ad- 
vances against i)ledged tobacco, business transactions 
in manipulated tobaccos, as well as in tobaccos sold by 
growers, was rather dull. Sales during October 
amounted to 1,519,437 pounds. 

Cuba — A strike among Havana tobacco workers 
has aiTected most of the large cigar factories. It is 
said that unless the strike is promptly settled, export 
movement of cigars, which is usually very heavy at 
this season, will be seriously affected, due to tlie fact 
that the striking workers are affiliated with harbor 
workers, and the affected factories have been re- 
strained from making shipments of cigars. (Commer- 
cial Attache Albert F. Nufer.) 

Turkey — There is rei)orted to be pending before 
the Assembly of Turkey a bill providing for the crea- 
tion of a corporation half of the capital of which will 
be supplied by the state and which will distribute 
Turkish tobacco and tobacco i)roducts abroad. (Con- 
sul Charles E. Allen.) 

Australia — Effective November 25, 1933, the 
Australian import duties on unmanufactured leaf to- 
bacco entered from all sources to be locally manufac- 
tured into tobacco other than for cigars and cigarettes 
were increased as follows: Unstenmied, per pound, 3s. 
6d., from 3s.; stenmied, jiartly stemmed, or in strips, 
per pound, 4s., from 3s. (kl. The existing margins of 
preference are retained. (Courtesy of Australian Cus- 
toms Representative, New York.) 

Canada — A ])rovincial estimate places the Bright 
flue-cured tobacco crop of Ontario at 23,000,000 pounds. 
Ontario tobacco prices tend to be firm, and current 
sales are reported better than in October, with tobacco 
growers well organized to protect prices. (Commer- 
cial Attache H. M. Bankhead.) 

Ireland — If and when the Irish Free State car- 
ries out its present ideas of increasing i)roduction to 
a point near consumption, and if a taste can be cre- 
ated for Irish tobacco, the United States might suffer 
the partial loss of the market for dark tobaccos of 
Kentucky, Tennessee and Virginia. Irish Free Stat© 



manufacturers obtain their supplies of American to- 
bacco direct from the United States and through 
dealers in Dublin, Liverpool and London. The aver- 
age volume imported during 1924-1928, inclusive, was 
9',279,54() pounds antl, during 1929-1932, inclusive, 
10,165,402 pounds. During the first -named period, di- 
rect shipments from the United States were approxi- 
mately 20 per cent, of the total, and, during the second- 
named period, direct shipments approximated 42 per 
cent. 



Outside Operations of Chain Stores 

Financial results of chain stores are often affected 
to a great extent by other than chain stores' operations, 
it was revealed on December 31st in the final factual 
study in the series of reports on chain stores resulting 
from the investigations of the Federal Trade Connnis- 
sion. This latest report, which is being submitted to 
the Senate, is entitled *aises of Capital and Applica- 
tion of Tobacco Chains.'* 

The Federal Trade Commission declared it found 
mend)ers of the tobacco chain group reporting a large 
proportion of their total capital devoted to outside 
operations. Some tobacco chains showed operating 
losses on chain store oi)erations, at the same time earn- 
ing a substantial amount of outside income which en- 
abled them to obtain a net income on investment. 

Of the total available funds of eleven companies 
($66,290,893) analvzed for the five years from 1925 to 
1930, inclusive, 41 per cent., or $27,106,019, were paid 
out in dividends. This exceeded the net income, and it 
was necessarv to draw^ funds from other sources to 
make up the deficiency. More than $19,000,000, or 29 
l)er cent., of the total available was invested in activi- 
ties other than chain store operations, such as securi- 
ties in other companies and real estate, while more than 
$13,000,000 were placed in capital assets. 

Income from operations of the business provided 
more than $26,000,000, or less than 40 per cent, of all 
funds; borrowed capital furnished more than $21,- 
600,000 (33 per cent.) ; profit on capital assets sold, 
more than $7,000,000 (11 per cent.), and capital stock 
issued, approximately $6,000,000. These receipts were 
not sufficient to carry on the normal operations of the 
business, and working capital was decreased by more 
than $4,000,000. 



Cigarette Prices Advanced 

The long-looked-for raise in wholesale prices on 
cigarettes became a reality on Monday night, when the 
R. J. Reynolds Tobacco Co. announced new price? on 
their Camel cigarette of $6.10 per thousand. The new 
price became effective on Tuesday, January 9th, and 
was an increase of 60 cents per thou^^and over the price 
])revailing since February, 1933. The other companies 
were quick to fall in line and the price on all the so- 
called "Big Four'' popular brands were advanced to 
the same figure. This would seem to establish the re- 
tail price at two packages for twenty-five cents and 
should prove of great benetit to the retailer, manufac- 
turer and jobber, and is in line wnth increased manu- 
facturing costs as a result of the National Recovery 
movement. 

The Tobacco World 



Epochal Events in 1933 




Follmcinff the release of the anmuil report of the Commissioner of 
Internal Revenue for the fiscal year ended June .?o. /(/?.?, the Tobacco 
Merchants Association of the T. S. issued its year-end Barometer, from 
which the followint] paragraphs have been taken, as a matter of record, 
because of their interest to the trade: 

HE fourth year of the world-wide depression 
has passed out, leaving a record of epochal 
events that will form an outstanding chapter 
in American history. Beginning with the 
bank moratorium shortly after the inauguration of 
Franklin 1). Roosevelt as President, there followed in 
rapid succession the enactment of the Agricultural 
Adjustment Act and the National Recovery Act; the 
codification of industries and the adoption of the Blue 
Eagle emblem ; the movements to reduce farm acreage 
to curtail crops and to raise the prices for farm prod- 
uce; the marketing agreements and processing tax 
levies; the gigantic public works program; the vast 
extension of the operations of the R. F. C. and the 
inauguration of a new monetary policy. All of these 
developments with their intense complexities and their 
new and intricate problems have helped to make the 
1933 record one that wull long be remembered. 

Referring particularly to the tobacco industry, it 
should be added that, during the year, the trade in al- 
most every State of the Union has been seriously men- 
aced with tax legislation in one session after another, 
totalling not less than forty-three regular and forty- 
four special legislative sessions (to which may be 
added the sessions in Alaska and Puerto Rico), 

But, happily, no new tobacco taxes were levied 
except in the State of Arizona, while the cigarette tax 
was reduced in one State and the cigarette dealer *s 
license fees were reduced in several States. 

During all those hectic times, those days and 
months of continuous and never-ending activities in 
dealing with the new developments, new situations, 
new problems and new emergencies, the tobacco in- 
dustry, in keeping with its long record of sterling pa- 
triotism and public spirited action, has steadily, firmly 
and unfailingly displayed an intensely patriotic desire 
to co-operate with the Government in every possible 
way, coupled with a genuine willingness to make all 
needful sacrifices for the sake of the common cause 
and the common good. 

Several branches have recorded an increase in 
volume during the twelve months from December 1, 
1932, to November 30, 1933. This is true, notably, in 
the case of cigarettes, over 111,000,000,000 of which 
were withdrawn for consumption as compared with 
103,0(X),000,00() in the previous year, and in the case 
of snuflF, which increased from about 36,000,000 
pounds to 37,(XX),000 pounds. 

Class A cigars also rose slightlv from 3,700,000,- 
000 to about 3,9(K),0(K),000, and it is particularly sig- 
nificant that this class has shown an increase for every 
month from April 1933 on, as compared with the corre- 
sponding months of the previous year. How^ever, it 
must be noted that the cigar business as a whole suf- 
fered a decline of about 4 per cent, in volume. 

The consumption of manufactured tobacco fell off 
slightly, but judging from the increase in cigarette 
paper w^ithdrawals, as reflected in the revenue reports, 

January 1$, 1934 



it seems evident that the ''roll your own" type of to- 
hacco registered a substantial gain. 

Collections from tobacco taxes amounted to $402,- 
739,059.25 for the year, an increase of $4,160,440.69, 
or 1.04 per cent., compared with the previous year. 
Tobacco taxes represent 24.86 per cent, of the total 
internal-revenue collections of 1933, compared with 
25.59 per cent, for the previous year. 

The taxes on small cigarettes, the source of the 
greatest portion of the tobacco tax collections, 
amounted to $328,418,413.58, an increase of $10,885,- 
333.56, or 3.43 per cent, over the previous year, and 
represents 81.55 per cent, of the total tobacco taxes 
collected during 1933, as compared with 79.66 per cent. 
for the previous year. Principal decreases in tobacco 
tax collections were $2,902,683.59 on large cigars, 
$2,579,814.76 on manufactured tobacco, and $441,302 
on snuff. The taxes collected on cigarette papers and 
tubes amounted to $918,552.84 and $39,592.50, respec- 
tively, decreases of $726,689.11 and $15,668.40, respec- 
tively, compared with the previous year. 

Taxes were collected in 1933 on 9,819,889 pack- 
ages of cigarette papers of domestic manufacture and 
on 57,894,783 packages of imported cigarette papers, 
an increase of 1,812,063 packages and a decrease of 
61,750,289 packages, respectively, as compared with 
the previous year ; and on 25,896,200 cigarette tubes of 
domestic manufacture and 171,702,500 imported ciga- 
rette tubes, a decrease of 110,084,300 and an increase 
of 31,106,350 tubes, respectively, as compared with the 
previous year. There were removed from the place 
of manufacture and imported during the year 1,458,- 
496,429 and 457,074,483 packages, respectively, con- 
taining not more than twenty-five papers each which 
were not subject to tax, increases of 439,819,611 and 
214,475,250 packages, respectively, as compared with 
the previous year. There were also removed during 
the year from the place of manufacture 20,893,300 ciga- 
rette tubes exempt from tax for use by cigarette man- 
ufacturers and for use in the manufacture of medici- 
nal cigarettes, an increase of 7,028,250 cigarette tubes 
compared witli the previous year. 

An enumeration of the companies operating in the 
two years reveals the following comparisons, the first 
iigure in each instance representing the number of firms 
in 1932, and the second the number in 1933: Tobacco 
manufacturers, 1,055-1,036; cigar and cigarette man- 
ufacturers, 6,088-5,900; Dealers in Leaf Tobacco, 
2,469-2,436. 



Albert Gold, superintendent of Henry Clay & 
Bock & Co., factories in Trenton, N. J., paid a friendly 
visit on Friday to Yahn & McDonnell, local distrib- 
utors of the International Brands. 



Out of town visitors last week were Frank Swick, 
of Simpson, Studwell & Swick, New York City man- 
ufacturers of Chukkers and other high grade ciga- 
rette brands; Mannie Perez, of Marcelino Perez & 
Co., Tampa, manufacturers of Redencion; Tony Gu- 
tierrez, manufacturer of the Carlton, Passaic, N. J. 




News From Congress 



_ -AND 

Ft D E R A L 

Departments 



From our Washington Bureau 62Z Albee Builoing 




KOTECTIOX of the American export trade in 
tobacco is sought by Congressman Kerr of 
North Carolina in a measure he has intro- 
duced in tlie House of Representatives, pro- 
hibiting the exportation of tobacco seed and live to- 
bacco plants except for experimental i)urposes. p]x- 
ports in violation of the measure would be i)unishable 
by a fine not exceeding $5,000, or by imi)risonment for 
not more than one year, or both. 

CJ) Ct3 Ct] 




BUSE of the privilege enjoyed by travelers in 
bringing tobacco and intoxicating ])everages 
into the United States when returning from 
abroad has led to the imposition of drastic 
restrictions bv the Treasurv I)e])artment. Heretofore 

» • I 

there has been no limit, so far as customs duties were 
concerned, other than the $100 exemption allowed for 
merchandise bought abroad as an incident to a bona 
fide trip for other reasons than the purchase of for- 
eign merchandise to be brought in duty-free under 
the exemption. 

The limitations now imposed permit the bringing 
in by -adults of not more than fifty cigars, 200 ciga- 
rettes or three pounds of manufactured tobacco. The 
amount of liquor which may be brought in is limited 
to one quart. 

CJ3 Ct3 Ct3 

OSSIBILITIKS that small concerns mav have 
been adversely aiTected by application of the 
industrial recoverv act are being studied bv 
a special committee created by the business 
advisory and planning council for the Dejiartment of 
Commerce. Information is being gathered in a va- 
riety of trades of cases of damage to small compa- 
nies which are attributed to the eflfects of the recovery 
act. On the basis of this data, the connnittee will rec- 
ommend definite and practical measures to correct 
the situation. 

**It is apparent already that the influences of XRA 
upon small concerns vary widely," it was stated at 
the department. **Some have been reported as hav- 
ing been greatly helped, others as having been closed 
down completely. Moreover, there is no ])recise size 
of concern which can be called * small', since a small 
company in one trade may be bigger than the largest 
in another. 

"In its early stages, therefore, the study will ymy 
attention to any reports of damage upon which de- 
tailed information is given and which can reasonably 
be attributed to the effects of the recovery act." 

6 





OBACCO investigations of the Bureau of Plant 
Industry of the Department of Agriculture, 
including studies of tobacco production and 
handling, will be continued during the fiscal 
year beginning July 1, next, at about the present level, 
despite a reduction of more than $10,000 in appropria- 
tion, it is shown by the budget submitted to Congress 
bv the President Januarv 4. 

For the coming year, the bureau is to be given 
$69,245. The present appropriation is $80,000, but 
under the economy program instituted by the Presi- 
dent last spring, $14,108 will be saved during the cur- 
rent year. Practically all of the increase over this 
year's expenditure of $65,892 is designed to be used in 
restoring one-third of the pay cut of 15 per cent, in 
Federal salaries which is now in effect. 

The same situation i)revails with respect to the 
fund for the collection and i)ublication of statistics 
on tobacco, for which $15,805 is to be provided. The 
l)resent ai)i)ropriation is $23,200, but only $15,100 is 
to be spent. 

The Tobacco Division of the Department of Com- 
merce is to be given a fund of $12,884 against a pres- 
ent approj)riati()n of $10,779. 

ft] Ct3 Ct3 

XEW tariff theorv, differing radically from the 
historic principles of the Democratic and Re- 
publican parties, contemplating the classifica- 
tion of all American industries with a view to 
selecting those which can best be ** sacrificed" in the 
carrying out of a long-term international trade policy, 
is under consideration l)y the Administration. 

Completion of the plan will be followed by the in- 
troduction of legislation vesting in the President 
broad powers to increase or reduce duties within cer- 
tain limits and to regulate imports, practically strip- 
ping Congress of its tariff-making powers. 

Each branch of every primary industry, includ- 
ing all agricultural and extractive industries, would 
be graded under the proposed scheme on the basis of 
its economic suitability to the TTuited States as meas- 
ured primarily by past efficiency; possible contribu- 
tion to national defense; wage levels and other indi- 
cations of general social utility; number of people 
emi)loyed an<l vested interest represented; geograph- 
ical distribution; alternative sources of foreign sup- 
ply, and dependence, for proi)er operation, on other 
industries. 

A half-dozen grades have been proposed, the first 
of which would include export industries requiring 

{Continued on Page 17) 

Thi Tobacco WorU 




Program for Tobacco Growers 

By J. B. HUTSON 
Chief of Tobacco Industry, Agricultural Adjustment Association 




ONSIDERING the situation of tobacco growers 
as a whole, we find that the receipts from the 
sale of all types of tobacco declined from ap- 
proximately $286,000,000 in 1929 to $105,000,- 
000 in 1932. A decline in dollar income of approxi- 
mately $181,000,000 to tobacco growers in three years 
resulted in an acute situation. Tobacco growers were 
being forced off their farms; some sought to shift to 
other types of farming in which the chances for a 
decent return were just as remote. The prospects for 
an improvement were very dismal at the beginning of 
1933. Excessive supplies of most types of tobacco and 
the general outlook for business made the situation 
for tobacco growers appear decidedly unfavorable. It 
was difficult to dispel gloom and pessimism when the 
facts were squarely faced. 

It is significant to note that during the period in 
which returns to tobacco growers declined so dras- 
tically, the manufacturers were able to continue to in- 
crease their profits. In fact, they were able to main- 
tain them on a high level during the depression period 
while farm i)rices were sinking to such disastrous 
levels. The total profits of fifty-two manufacturers 
was $146,000,000 in 1932 as compared with $76,000,000 
in 1933. There were other branches of the tobacco 
industry which were likewise able to maintain their 
])rofits at a high level during this period of declining 
farm prices. 

Obviously the tobacco grower was not receiving a 
fair and equitable share of the consumers' tobacco dol- 
lar. The answer of the national Congress to this 
anomalous situation was the Agricultural Adjustment 
Act, a mandate to the Secretary of Agriculture to pro- 
cure for the producers of the nation's basic agricul- 
tural commodities a fair share of the national income — 
to establish that parity between the farmers' prices 
and the prices for the things he buys that existed, for 
tobacco, during the ten years from 1919 to 1929. 

Acting on this mandate from Congress, a tobacco 
section was organized in the Agricultural Adjustment 
Administration and began to function, drafting plans 
for aiding the tobacco j)roducers. In order to have 
a definite objective before us, we set out to help obtain 
for tobacco growers approxinuitely twice as many dol- 
lars as they received last Vear. When we examined 
the situation in detail, we found that large stocks of 
j)ractically all types of tobacco had accumulated for 
one reason or another during the i)ast few years. A 
large crop of most types had already been i)lanted and 
as the harvest time aj)[)roached, we knew that the cur- 
rent crop was going to add more than 200,000,000 
pounds to the surplus supplies. 

Many plans for dealing with the various types of 
tobacco were carefully considered. (Jrowers them- 
selves came to Washington and we have been in con- 
stant consultation witii the representatives of the to- 
bacco growers as well as otiiers in the tol)acco industry. 
From these discussions and through our various 
efforts in the field in dealing with the fundamental 
l)roblem of controlling production, a general policy for 
tobacco has evolved. It is a program which has al- 

Jamtary 15. 1934 



readv demonstrated its effectiveness in the flue-cured 
area and one which, we confidently believe, will bring 
us close to our goal of doubling the income of tobacco 
growers for the current marketing season. 

We have eleven production adjustment programs 
in j)rogress at the present time. These programs for 
the different types of tobacco have two parts which 
constitute our present policy for increasing the income 
of tobacco producers: First, growers are offered con- 
tracts to reduce production. As they agree to reduce 
production, we proceed to negotiate with the buyers 
for higher prices. Backing up a production adjustment 
program for the 1934 crop with a marketing agree- 
ment on the 1933 crop, means in effect, that we are at- 
tempting to capitalize the action that the tobacco 
growers are taking to reduce production next season 
in terms of higher prices for the current season. 

Through these two instrumentalities — the produc- 
tion adjustment programs and the marketing agree- 
ments — we hope that, in spite of the very large sup- 
jjlies that confronted us at the beginning of the season, 
to help tobacco producers obtain more than $200,000,- 
000 during the current marketing year as compared 
with the $105,000,000 received for the 1932 crop of 
tobacco. 

In working out these programs, we have first con- 
sulted with the tobacco jn-oducers themselves to find 
if they were willing to join in a unified effort with 
their neighbors and with their Government to restrict 
tobacco production to market requirements. Finding 
an eagerness on the ])art of the growers to participate 
in a program of this character, we then began nego- 
tiations with the principal domestic buyers to work 
out marketing agreements that would mean improved 
prices for the current crop. 

As I have ])reviously stated, the profits in some 
]>ranches of the tobacco industry have been relatively 
large during the i)ast few years. In the formulation 
of plans to effect a more eipiitable distribution of the 
consumers' tobacco dollar as between the growers on 
the one hand and the other branches of the industry 
on the other, we have found the tobacco manufacturers 
generally willing to join with us in getting higher 
prices for the growers. One very important reason 
for that is that, acting with the advice and counsel of 
tobacco growers, we have been able to devise plans 
that would protect the manufacturers against ex- 
cessive supplies being brought to the market next year 
or the year after. Another important reason is the 
fact that where our programs have resulted in in- 
creased costs to manufacturers the competitive rela- 
tionship between individual manufacturers has not 
been materially changed by these added costs. And, 
in the ])rocess of these negotiations, I have found a 
disposition among the numufacturers generally to do 
what they can, consistent with accepted business pol- 
icy, to bring about a greater return to the growers. I 
conceive this conunendable attitude to be a further 
recognition by business and industry that the prin- 
ciple of parity prices for agricultui*e is not only just 
for the farmer, but good business. 



We set out first to deal with the cigar-leaf situa- 
tion. Supplies of this type were sufficient to last for 
five years at present rates of consumption. AVe asked 
cigar-leaf tobacco growers to reduce the 1933 crop to 
a level 50 per cent, below the 11)32 crop. Some reduc- 
tion had already been contemplated and although the 
program was inaugurated after the planting season 
was well under way, more than 80 per cent, of the 
growers joined in the plan. As a result, the present 
crop of cigar-leaf tobacco is approximately 60 per cent, 
of consumption. However, the farmers still hold a 
portion of the crops of earlier years, manufacturers' 
stocks are still large. Two or three years more, with 
production at a reduced level, will be necessary before 
a healthy, balanced situation is restored. Meantime 
payments will be made those who participate in the 
reduction program and every effort made to obtain 
a market and a fair j)rice for the reduced output. 
Rental and adjustment payments made cigar-leaf 
growers up to this time approximate $1,500,000. 

Our next program concerned the Hue-cured types 
gro^\Ti in Virginia, the Carolinas, Georgia and Florida. 
Stocks on hand were not excessively large but the ma- 
turing crop promised to be about twice as large as 
the preceding season's short output and somewhat 
above the level of consumption. ^larkets opened Au- 
gust 1, and as the selling season advanced, it became 
apparent that the crop was even larger than antici- 
pated earlier in the season. By the time the markets 
opened in Eastern North Carolina, those in the tobacco 
trade were convinced that the crop was going to be a 
very large one. AVhen they offered less for the to- 
bacco, markets were closed. Plans were near comple- 
tion for a production adjustment program, but to meet 
the emergency a tentative agreement was offered 
growers. More than 90 per cent, of the growers signed 
during a two weeks' period, agreeing to reduce pro- 
duction the next season. 

As soon as growers had given evidence of their 
intention to reduce the next crop, a marketing agree- 
ment was concluded, under the terms of wliich the 
leading domestic manufacturers agreed to pay prices 
materially higher than those which prevailed prior to 
the closing of the markets. Since the domestic buyers 
purchase in most grades, comjietition caused the prices 
paid by exporters to advance ahnost as much as the 
prices paid by domestic manufacturers, it now ap- 
pears, as the result of this coml)ined attack on an 
emergency problem, flue-cured growers will receive be- 
tween two and one-half to three times as much income 
during the current marketing year as they received 
last year and more than twice the amount they re- 
ceived for the 1931 crop. The adjustment campaign 
is making good progress in the fine-cured area and 
the vast majority of the growers have already agreed 
to reduce their production 30 j)er cent, next year. We 
next focused our attention on the Hurley situation and 
at the same time engaged in the development of pro- 
grams for the fire-cured and dark-air-cured types. 

Stocks of Burley are excessively large this year. 
For the fifth year in succession, growers produced 
more Burley tobacco than is recjuired for consump- 
tion. The crop this year, as most of you know, is about 
50 per cent, above consumption, and there is in this 
country, including the present crop, as much Burley 
as normally would be used in four years, which is 
about 50 per cent, above normal. \Xq spent several 
weeks in numerous conferences with growers and 
others interested, in Burley tobacco from all sections 
of the country in developing a program for this type 



of tobacco. After these conferences, the adjustment 
])rogram was completed and announced just prior to 
the opening of the markets in December. Since that 
time there has been concluded a marketing agreement 
under which the domestic manufacturers agree to pur- 
chase a minimum of 2()0,00(),000 pounds of this year's 
crop at an average price of not less than twelve cents 
per pound. The buyers agree to purchase against 
their requirements in the usual and ordinary manner, 
and it is believed that the competitive situation is such 
that it will be to the interest of all concerned to make 
the crop average not less than twelve cents. This 
price will depend to some extent on how promptly and 
completely Burley growers act in signing the contracts 
agreeing to reduce production next season. Reduc- 
tions of 33 1-3 per cent, and 50 per cent, of the base 
period are being offered to Burley producers. 

About the same time the Burley program w^as 
announced, the adjustment plans for fire-cured and 
dark-air-cured types were formulated. Fire-cured to- 
bacco w^as formerly consumed in large quantities in for- 
eign countries, but foreign consumption has drastically 
declined in recent years. Exports of the fire-cured 
types have declined from around 200 million pounds 
in 1923 to below 100 million i)ounds during the past 
several years. The production of competing types has 
been increased in many foreign countries and in some 
instances the consumption of the particular products 
in which fire-cured is used has declined. Consumption 
of fire-cured tobacco in the United States also has 
declined in recent years. In other words, the w^orld 
is now demanding only a small crop of fire-cured to- 
bacco, whereas land and equipment are available for 
producing a nmch larger crop. Total supplies are now 
large in relation to present consumi)tion requirements. 
The problem is how to make the best of a very unsatis- 
factory situation. During the past two weeks, growers 
in Kentucky, Virginia and Tennessee have been sign- 
ing contracts to reduce the next crop by 25 per cent. 

We have under way a reduction campaign for the 
dark air-cured types. World consumption of these 
types is approximately GO j)er cent, below the level of 
ten years ago. Export trade has declined until there 
is little more to ])e lost. Consumption during the past 
year has been about 10 per cent, smaller than during 
previous years, but sup])lies are e(|ual to those of a 
year ago. Growers of these types are being asked to 
reduce production 30 ])er ccmt. next year. 

Negotiations are now under wav for marketing; 
agreements on all the ilark types of tobacco. These 
negotiations entail four sepaiate agreements. The 
proposed agreements have already been drafted and 
some of the commitments tentatively agreed upon. 
Under the terms of these proposed Jigreements, the 
l)rincipal domestic buyers of these types would agree 
to i)urchase quantities equal to the amounts used last 
year at prices ranging up to 100 per cent, above last 
year's prices. The agreements ])rovide a minimum 
auction price bid of $1.50 on all the dark types, with a 
jnovision that on the tobacco foi- which no offer is 
made a price of $1.25 will be paid. In addition we are 
looking carefully into the j>ossibility of regaining some 
portion of the export trade for dark tobacco lost in 
recent years. To this question in particular we w411 
be directing our attention during the next few weeks. 

If a large percentage of growers sign the adjust- 
ment contracts, it is expected that the total returns 
for fire-cured tobacco during the current marketing 

{Continued on Page 17) 

Th4 Tobacco WorU 




ALWAYS tAe Jlfiest 5o6aau) and ONLY tAe Writer ^£em€6 



January 1$, 1934 



New Outlook for Trade Associations 

By WILSON COMPTON 
Chief of Trade Associations, National Recovery Administration 




HE Xational Industrial Recovery Act was 
hailed as a Magna Cliarta for trade and in- 
dustrial associations. But it is more than that. 
It is a challenge to both industry and public 
service. 

Trade and industrial associations are the backbone 
of the system of industrial code government author- 
ized untier the Act and being diligently and coura- 
geously developed by the Xational Kecovery Adminis- 
tration. But this background of trade organization is 
as yet inadequate. Code government and the oppor- 
tunity which it aifords for deliberate industrial self- 
regulation have conferred i)rivileges and imposed 
duties to which the association establishment of Ameri- 
can industry has not yet adjusted itself. There are 
in this land many thousands of trade and industrial 
associations, local, regional or national in scope. But 
of these only a few hundred were effective; the others 
were struggling against difficult, if not insui)erable, 
obstacles. 

Co-operation in industry, under our traditional 
system of competition enforced by the sanctions of re- 
pressive statutory prohibitions, has been under a con- 
spicuous handicap. Much public mention has been 
made of the anti-trust laws. No one will seriously 
question the wisdom or the i)ublic value of their objec- 
tives. Nor will any person informed of the facts and 
problems of industry and conunerce under present-day 
conditions be left in doubt of the unwisdom of the man- 
ner in which it was sought to accomplish these public 
objectives under the anti-trust laws. Public protection, 
and not the particular fornmla by which it is secured, is 
the important consideration. The Sherman Act, though 
sound in purpose and principle, was inflexible in ajjpli- 
cation and inconsiderate of changing competitive con- 
ditions in a world of economic change. In many respects 
and in manv industries the act had become a destroyer 
of public interests which it was intended to protect. In 
many industries it became the greatest ally of monop- 
oly. It deprived small enterprises of the privilege of 
co-operation with others, which was their only effective 
means of meeting the competition of large enterprises. 
Etven among the more highly centralized industries, the 
heavy hand laid upon effective co-operation left com- 
petitors both large and small at the mercy of destruc- 
tive practices. 

Competition in Changed Times 

As long as public purchasing power was aV)undant 
and the demand for commodities heavy, the industries 
and trades were enabled l)y and large to withstand 
these adverse conditions, to absorb them, and to can*y 
on. But when public purchasing power fell by half and 
the demand for commodities vastly declined, thev were 
confronted with the unhappy choice of joining in the 
national epidemic of competition in wage reductions or 
risking annihilation. 

The American people were being called upon to 
pay too high a price for the preservation of the legal 
forms of competition, which had lost both their eco- 
nomic and humanitarian substance. 

For more than a decade far-seeing men in industry 
and in government have sought constructive modifica- 

m 



tion of the anti-trust laws which would preserve the 
substance, if not the traditional form, of the protection 
through public sanctions and supervision of reasonable 
agreements in industry and commerce. But only the 
universal distress of a prolonged depression, which was 
witnessing the gradual destruction of the nation's 
wealth and the ])eople's savings, has converted that 
l)olicy into public action. That the business world has 
i)ecn prompt to resjmnd as best it could to the oppor- 
tunity thus created is manifest in the fact that already 
nearly 60 i)er cent, of industry is under pernument code. 
Another 20 jier cent, probably will be under code within 
the next few weeks, and the remainder as promptly as 
reasonably representative and effective organizations 
can be established in those industries or industrial 
groups which are presently without satisfactory or- 
ganization. 

But the i)roblems of trade associations and their 
code authorities have only begun. The most important 
and the difficult problems lie ahead in the field of indus- 
trial code administration. Associations vested with 
resi)onsibiHties for code administration must develop, 
if they do not already have, reasonable facilities for 
fact finding, investigations, inspections, audits, educa- 
tion of members of industry, provision for adjustment 
and arbitration of complaints, and the adjudication of 
appeals. lender many of the codes, industries must 
develop standard methods and classifications of cost 
accounting, and methods and forms of statistical re- 
])ort. The activities of code government into which in- 
dustriail organiza,tions have been suddenly plunged 
include legislative, executive and judicial functions. 
It is not to be expected that the trade associations will 
have uniform or universal success in meeting these new 
obligations. It is rather to be expected that both the 
trade associations and the National Recovery Adminis- 
tration will join in the continuing and hopeful effort of 
improving tlie efficiency and extending the facilities of 
the American trade associations and their code author- 
ities. 

Organization of Code Administrations 

Broadly speaking, there are two divisions of code 
administration: 

F'irst: Deliberate and orderly planning of indus- 
try, relying upon industry education and upon the de- 
sire of the vast majority of competitors to deal fairly 
among themselves and with those dependent upon them 
for employment. 

Second: The so called ^^administration of com- 
pliance*," based upon complaints of violation of codes 
or of industrial disputes arising thereunder. 

The first is constructive and relates to all industry 
members. The second is remedial and, in general, re- 
lates to the ])athological fringe in each industry which 
is not content to deal fairly with fair-dealing competi- 
tors or with labor or with the public, but seeks oppor- 
tunity for sj)ecial and often unfair advantage. The 
administration of conq)liance under codes of fair com- 
petition may be generally divided into three classes, 
including: 

First : Complaints of non-observance or prescribed 
wages and hours of labor, or other labor provisions ; 

Th€ Tobacco World 




Copyright, 1»33. H. J. Keyuoias Tobacco Company 



Sfeacfy Smokers fum to Came/s 



You've often seen his name and picture 
in the papers— Jaffee, the city-bred 
boy from the U. S. A. who beat the 
best Olympic skaters that Europe had 
to offer, and became the skating cham- 
pion of the world! Speaking of speed 
skating and cigarettes, Jaffee says: 
"It takes healthy nerves and plenty of 
wind to be an Olympic skating cham- 
pion. I find that Camels, because of 



their costlier tobaccos, are mild and 
likable in taste. And, what is even 
more important to a champion athlete, 
they never upset the nerves." 

Change to Camels and note the 
difference in your nerves... in the 
pleasure you get from smoking ! 
Camels are milder. . .have a better 
taste. They never upset your nerves. 
Begin today! 




IT IS MORE FUN TO KNOW 

Camels are made from finer, MORE EXPENSIVE 
tobaccos than any other popular brand. 



HOW ARE 
YOUR NERVES? 

TRY THIS TEST 




CAMEL'S 

COSTLIER 

TOBACCOS 




Draw a line 20 inches long on the edge 
of a newspaper. Stick a straight pin in 
the exact center. Place a forefinger on 
either side of the pin. Close your eyes 
. . . try to measure off quickly the dis- 
tances by moving both hands at the 
same time. Have a watcher stop you 
when you reach the edge. See if both 
your fingers have moved the same dis- 
tance. Most people try this at least six 
times before both hands come out evenly. 

Franb Crilley (Camtl •mofcer). iamoua 

deep'tea diver, completed the test 

on hia tecond try. 



NEVER GET ON 
YOUR NERVES 

NEVER TIRE 

YOUR TASTE 



Jmmary 15, igj4 



n 



Second: Trade practice complaints; 

Third: Complaints involving jurisdiction and 
often competitive controversies between industries and 
trades. 

But the greatest opportunity for associations is in 
that development and administration of industry which 
for lack of better phrase, I term ''industry planning,'' 
with all that it implies in industry stabilization, bal- 
ance of production and consumption, security of em- 
ployment, avoidance of preventable wastes, encourage- 
ment to technological advance and improvement (where 
improvement is vastly needed) in the processes of mar- 
keting and distribution. 

An Experiment Becomes a Demonstration 

Code government under the National Recovery 
Administration has been described as an experiment. 
But it is more than that. It is fast becoming a demon- 
stration. Those who believe that nothing ought ever 
to be tried for the first time will, of course, find no good 
in this undertaking. Those, however, who believe that 
the uncontrolled competitive process in modern busi- 
ness is needlessly harsh on employer and employee 
alike, that this harshness is not compensated by com- 
mensurate public benefits, and that it can be tempered 
by the establishment of reasonable controls under pub- 
lic sanctions, will find good in the act. Those w^lio 
believe, as I do, in the fundamental capacity of Ameri- 
can industry for intelligent courageous and honorable 
self-regulation will find in the act much good, much 
promise and much hope. 

The National Recovery experiment is, itself, not 
a cure-all. It is seeking, however, to do more than re- 
lieve the symptoms of the depression. It is seeking 
to remove causes. The extent to which it succeeds is, 
perhaps, now dependent largely upon government, but 
ultimately will be dependent upon industry, on trade 
associations and their code authorities. It already 
has had the visible effect of inspiring more men to do 
their thinking for themselves rather than as hereto- 
fore buying it ready made. Those of us with large 
industry responsibilities who are close enough to in- 
dustryto understand its facts and problems; and yet 
far enough away to view them in a fair perspective of 
valid public interests, are not so much concerned 
whether the National Recovery undertaking fits the 
economic textbooks as whether and how it can best be 
made to work. The plan of industrial self-regulation 
under the Recovery Act affords the greatest potential 
chance in our national history for a combination of 
sound industrial programs and right persons and right 
attitudes to make them work. That is the problem for 



which industry and trade associations will supply the 
solution. 

Opportunity and Obligations of Associations 

Perhaps I can define the opportunity and the obli- 
gation imposed upon associations no more clearly than 
in the language in which six months ago I submitted 
to the Lumber and Timber Products Industries the pro- 
posed Code of Fair Competition, subsequently ap- 
proved by the President, under which these industries 
today are operating: 

**The National Industrial Recovery Act offers to 
the forest products industries the most promising op- 
portunity yet afforded, — or likely to be afforded, — 
for orderly and effective self-government. It is an 
emergency plan. If it works it will continue. But it 
is much more. What is going on in America, as I view 
it, is a gigantic struggle between socialism and regu- 
lated individualism. Uncontrolled individualism as 
manifested in the past decade has failed. If regulated 
individualism likewise fails the obvious alternative is 
socialism in some form, with its supplanting of indi- 
vidual initiatives and its suppression of individual 
rights. 

* * There is more at stake than that. I do not believe 
that regulated individualism will fail. If it fails it 
w^ill be because direct government regulation, which 
ultimately is necessarily political, will have supplanted 
industrial self-regulation. The National Industrial 
Recovery Act gives industry not only the opportunity 
for self-regulation but, w^hat is more important, the 
enforceable means of making it effective. No great 
industry is acting w^isely which does not promptly re- 
spond to the Nation's challenge or which does not delib- 
erately, courageously and in good faith seek to estab- 
lish in this country the right, the effectiv^eness, and the 
public dependability of industrial self-government. 

**If we keep our heads, if we don't try to run before 
we walk nor permit others to persuade us to do so ; if 
we don't expect too much; if we sturdily withstand 
the stampede of bogies and hobgoblins; if we do our 
part courageously; and if we seek for ourselves only 
the same consideration that we could accord to others, 
these things will work out all right. 

**0f that I am confident. A great opportunity 
confronts American industry, — and a solemn duty. 
Upon its outcome depends the livelihood of millions of 
people ; and the opportunity to prosper, of every indus- 
try. It is a task for honorable men. Statesmanship 
is finding out which w^ay God Almighty is going and 
then getting things out of His way." 



Accepting Gift Cigars A Criminal Offense 



The gift of $50 boxes of cigars to employees of our 
Federal Government during the Christmas season 
caused Ewing Y. Mitchell, Assistant Secretary of Com- 
merce, to return his gift box to the donor and also to 
issue an order to the members of his department to do 
likewise. 

**I do not think it good practice," Mr. Mitchell in- 
formed the donors, **for a Government official or em- 
ployee to accept gifts, even of small value, from those 
with whom he has business relations or with whom he 
may have business relations. ' ' 

In his order Mr. Mitchell stated that such gifts 
were made to ' * influence favorable action by those who 
receive them and that such object is, to a greater or less 



degree, obtained in a large percentage of the cases." 

**I certainly would not have received the cigars," 
Mr. Mitchell asserted, **had I been in a private posi- 
tion. I regard the matter as extremely important nl 
though the present instance may not seem of large 
proportion. These gratuities generally are not gifts 
through virtue of friendship and their purpose is to 
influence the recipient." 

^fr. Mitchell's order said it was a criminal offense 
for any Go%^ernment w^orker to accept anything de- 
signed to influence his decision on any question. Such 
a recipient may be fined three times the value of the 
gift, and sentenced to prison for three years. 

TA# TiOfOcco World 



mOM JCY pi\^S 



... by folks who 
certainly ought to know 
how to make pipe to- 
bacco. They ask you to 
try Granger. 



A »en»ible package 
10 cents 





-the tobacco that's MADE FOR PIPES 



• 1H>. 



ft Ifms ToMcoo Oft. 



January 15, 1934 



f.f 




HIbAt)El2i>MIA. 





Bayuk Phillies Under Arctic Ice 

X EXHIBITIOX in one of the disi)lay windows 
in the reception room at Bayuk headiiuarters 
is a tin of twenty-five Phillies which was car- 
ried across the Atlantic Ocean to the Arctic 
Ocean, under the Arctic ice and hack to Berjjen, Xor- 
way, on board the "Xautilus, " the submarine used by 
the \Vilkins-p]llsworth Trans-Arctic Submarine Expe- 
dition. As i)art of the dis])lay there is an aflidavit cer- 
tifvin": to that fact, sii^ned bv Hubert Wilkins, com- 
mander of the expedition. 

Jersey City Tobacco Co. is meetin^u' with pro- 
notinced success in its jiromotion canipaiirn on Bayuk 
products, assisted by Bayuk Salesman C. W. Wright. 

Territorial Manager J>. W. Burnside is en route 
to Pittsburgh to assist the X. Rice Cigar Co. in spread- 
ing the gospel of Bayuk Phillies in that sector. 

Better than ever Bayuk Phillies are progressing in 
Buffalo, where the distributor, Kearney-Lehmann Co., 
opened the Xew Year with a drive, aided by Territorial 
Manager J. P. Given and his assistant, E. T. ClitTord. 

In addition to Harry S. Rothschild, president; A. 
Jos. Newman, vice-i)resident in charge of sales; Harry 
Wurman, vice-president in charge of manufacturing; 
and Neal D. Ivey, advertising counsel, as noted in the 
last issue of The Tobacco World, addresses at the 
annual Bayuk sales convention were made by Samuel 
Bayuk, H. L. Hirst and Louis Kramer. 

Present from the sales department were Joseph L. 
Sims, B. W. Burnside, E. C. MacAllister, G. C. Munson, 
Leo M. Tighe, V. B. Muller, Rov Barkman. John J. 
Snvder, G. L. Branzell, C. L. Stetfens, A. C. Roy, C. 0. 
McClure, Floyd Xagell, J. P. Given, H. D. Soyster, 
Roy D. Harris, J. linger, P. T. Morris, Harry Catlin, 
Joseph H. Floersheimer and Charles Cox, as well as 
Branch Managers P^red Brown, Abe Brown, V. G, 
Sheller, E. Sharrock, John T. Rynn, John P. Sweenev 
and M. F. Westfall. 



David F. Morris, associated with Charlie Bond as 
tobacco agent for the Philippine Government, at 15 
William Street, New York City, was in town last week 
with glowing reports as to the demand for Manila 
cigars throughout the country, and is highly optimistic 
as to the outlook for 1934. Dave was quite elated about 
the increase in Manila cigar imports for Xovember and 
believes that the December figures when released w^ill 
disclose another 50 per cent, increase over the same 
month of the previous year. 



Trade Notes 



Abe Caro, Optimo ambassador, was in town last 
week conferring with the local distributors on plans for 
increased sales for 1934, 



The G. H. P. Cigar Co. is working steadily in order 
to keep the demand supplied for their VA Producto and 
La Azora, following a splendid volume of orders for 
the holiday season which exceeded their expectations. 



The Royalist factory, on North Second Street, is 
experiencing a splendid demand for their brand follow- 
ing the holiday season, which has kept the factory run- 
ning with practically no shutdown right through the 
usual first-of-the-vear lull. 



Gus Lorber, factory representative for Geo. Ziffer- 
blatt & Co., manufacturers of the Habanello brand, who 
makes his hea(l«iuarters in Cleveland, Ohio, was a vis- 
itor at factory headcjuarters last week conferring with 
Mr. ZitTerblatt on plans for 1934, which they expect to 
top 1933 by a wide margin. 



John Wagner & Sons, local importers and distrib- 
utors, 233 Dock Street, report demand holding up re- 
markably w^ell on their brands following the holiday 
season. In fact, orders continue to come in in such 
volume that they haven't been able to realize that the 
holidav rush is over. 



W. L. Fenton, representing the Little Cigar De- 
partment of the P. Lorillard Co. in this territory, is 
always **on his toes" and has a splendid distribution 
and sale of his products here. Mr. Fenton reports that 
business is good and looks forward to 1934 with every 
expectation of it being very much better than 1933. 



James Heaney, representing the Awerlean Cigar 
Company, was in town last week, promoting the distri- 
l)ution and sale of Antonio y Cleopatra cigars through- 
out Philadelphia territory. Yahn & McDonnell Cigars 
are the local distributors of this brand and they report 



a good demand for this brand. 



The Tobacco World 



BAYUK BULLETIN 




Wf DOOUtnUIT 



VOLUME II. 



JANUARY 15, 1934 



NUMBER 1 



PHULO FAX MEMOIRS OF ALEX SMART 



(The Retailer's Friend) 

SAYS 




Well, how many of 
those New Year Resolu- 
tions are we keeping so 
far? Stick to it, fellows 
. . . the first eleven 
months are the hardest! 



Super Salesman Solves 
Distribution Problem 



Don't forget . . . Christmas wraps 
oflF all cigars. Don't keep your l/40ths 
until next July . . . sell 'em now . . . 
you can buy in July for July. Maybe 
the buyer of a l/40th Christmas 
wrapt cigars will buy another box 
now . . . put up a sales talk, you 
progressive retailers, and at least try 
to sell 'em. — o — 

Mr. Dealer, did your inventory 
show some sleepy movers ... a few 
dead items . . . some products which 
won't improve with age? Put the 
skids under them right NOW and get 
rid of 'em! — o — 

When are you figuring on getting 
your 1934 increases, Mr. Salesman? 
Last three months of 1934? Didja 
ever tackle getting the big increases 
the FIRST THREE MONTHS and 
then if you have to coast a little 
(and you shouldn't) do it the last 
three months? — o — 

Are you a salesman to your 482 
accounts or are you Sales Manager of 
482 accounts for the Products you 
sell? — o— 

Don't fear competitive brands but 
respect competitive brands . . . don't 
knock competitive brands . . , don't 
be too solicitous of how competitive 
brands are selling . . . you've got a 
man's-size job looking after the health 
of your own brands. 

J. O. K. inquires, "I certainly hope 
there'll be an increase in consumption 
of cigars in 1934. What do you think, 
Phil?" Answer: If all we folks in 
the cigar game do is to HOPE for 
bigger cigar consumption, there won't 
be any , . . let's go out and do our 
bit to INCREASE cigar consumption. 
We can do it . . . BOOST cigars, 
but set a good example by SMOKING 
CIGARS YOURSELF! 



Alex Smart, like all great generals, 
can obey orders on occasion as well as 
issue them. In his preceding install- 
ment Alex described how the boss 
instructed him to "see each and every 
one of these seven accounts," and 
how Alex followed instructions to the 
letter. In this chapter we again learn 
the truth of the old adage: "There's 
no pleasing some people," and hear 
for the first time of the Smart Plan 
for obtaining distributioju 




The jobber who is going to make 
the best showing in his business in 
1934 is the iobber who found out the 
most about his business in 1933 — and 
wasn't afraid to face facts. 

K. O. G. writes, "Is there any pos- 
sible way of my ascertaining if I got 
my share of the cigar sales in my ter- 
ritory last year? I mean what per 
cent of the total per cent of total 
cigar sales did I get? Can you tell 
me?" Answer: Where have you been 
the last couple of years, B. O. G.? 
Sure you can . . . will answer by 
mail. — — 

Yours truly wants to heartily thank 
each and every one who sent him a 
Christmas or New Year Card. F^el- 
lows, I sure am grateful for your 
expressions of appreciation of my 
humble efforts. 




D.ai. 



•^M»riai«,| tritA BAYUK aCARS, INC., PMkt' 
^**phU*-.-,Makmrt of /inm cigart atoM J097 



"Well, Mr. Smart, how did you find 
things?" was the greeting from my 
Head Salesman Boss. 

"Great," replied I. "I'm going to 
like that territory . . . good hotels 
and not tiresome train jumps." 

"How were the customers' stocks 
. . . how did you find business . . . 
let's look over your orders," said the 
H. S. B. 

"Orders — Orders — what Orders? I 
didn't get any orders," came back I. 
"You instructed me to see each and 
every one of the seven accounts . . . 
I caught each and every one in and 
saw each and every one. I followed 
instructions . . . you said your firm 
wanted business . . . that's natural 
but you didn't instruct me to get 
orders . . . you said see the cus- 
tomers . . . you never murmured a 
word about selling the customers." 

And then he remarked, "I guess 
I'm wrong, Mr. Smart . . . but I was 
right when I said you were a man in 
a million. Your brain is notty ... it 
has, in fact, two *nots' in it . . . 
it's not big enough and what there is 
of it is not used enough. What reason 
shall I state for accepting your resig- 
nation?" 

Cripes . . . one minute T have a 

{'ob with him and the next minute 
haven't and the next second, he asks 
me why. And he told me, before he 
seduced me into going with him, that 
maybe after a week or so, he'd recom- 
mend me for a promotion to Assis- 
tant Salesmanager. How I had been 
tricked! But, c^uickly, I saw the inner 
workings of his plot ... I was too 
smart for him . . . with me out of 
the way, he'd work for that job him- 
self. Well, he could work for it — I 
wouldn't. Do you blame me for telling 
him I wouldn't resign but that I'd 
quit? And quit I did! 

You CanH Down a Good Man 

You will recall that when I first 
decided to benefit some manufacturer 
by consenting to be employed by him 
that I was going to write quite a few 
of the manufacturers and when vir- 
tually all had hastened to express 
their happiness at opportunity to get 
me, to pick out the most advantageous 
oflfer ... I was switched from that 
policy by reason of being practically 
shanghaied into going with the firm 
whose Head Salesman I met at the 
hotel. Well, now I intended to adopt 
my first plan and so I prepared a let- 
ter and had copies of it run off on the 



typewriter and mailed a copy to about 
10 manufacturers, retaining the orig- 
inal letter for my own record so that 
I would have knowledge of what I 
said in the copy. I addressed the 
President of each Company and not 
the General Sales Manager, as the lat- 
ter guy might not want me with his 
Company knowing that he'd have real 
competition to hold his own job if his 
firm got hooked with me. 

My letters were very brief as they 
should have been ... I admitted that 
I was a salesman . . . salary and ex- 
penses desired and that I would go 
anywhere. I considered it a waste of 
time to go into details as to my age; 
years of experience; why I thought I 
could sell the specific products of each 
manufacturer to whom I wrote, or my 
willingness to permit my salary to be 
set after I demonstrated my value as 
a business getter. I figured that if I 
was ready to put up my time against 
a manufacturer's money, that was a 
50-50 break. If I had confidence in 
any manufacturer, he had to have 
confidence in me right from the start 
... if we didn't stay together he lost 
his money and I lost my time, which 
is my money. Right? 

Will believe to my dying day that I 
must have mis-directed most of the 
letters and forgot to put a return ad- 
dress on, because I only received two 
replies. But fate is always good to 
smart people and these tw^o letters 
came from the very two firms whom I 
wanted to afford a connection with me. 



DON'T OVERLOOK 
THE GALS 

A wide-awake Mid-west cigar mer- 
chant reports good sales of five-packs 
to women. Oh no, the gals aren't 
taking to cigars; they buy 'em for 
hubby — or the boy friend, perhaps. 

When Mrs. Jones comes in for a 
package of her favorite cigarettes our 
wide-awake merchant flashes a five- 
pack on her. "Here's a neat little pack 
of five of Mr. Jones' favorite cigars. 
Wouldn't you like to surprise him 
with one?" Often Mrs. Jones becomes 
quite a steady purchaser. 

Or perhaps he has a new brand to 
introduce. The selling line is a little 
different. "Mrs. Jones, here's a new 
cigar I'd like Mr. Jones to try. 1 
think he'll like it. It comes in this- 
handy little pocket case for only a 
quarter. Would you . . .?" Often 
Mrs. Jones would. And quite fre- 
quently Mr. Jones comes in for some 
more of the same. 




CHRISTMAS LESS THAN 
12 MONTHS OFF 

Three hundred-odd days from now 
it will be Christmas again. Father's 
Day is only six months away. Memo- 
rial Day, according to our almanac, 
comes on May 30th. Labor Day is set 
for September's first Monday. 

So what? 

So, what are you doing about build- 
ing a mailing list to take full advan- 
tage of the golden opportunities for 
box sales offered by these holidays, as 
well as birthdays and other festive 
occasions? Now is the time to begin 
noting down names and addresses, 
favorite brands, "next-of-kin," birth- 
days and other information about 
your regular customers. A good mail- 
ing list, like Rome, isn't built in a 
day. 



Very deliberately I analyzed each 
firm from every personal angle . . . 
finally agreed with myself to go with 
one, and then tossed a coin for final 
decision and hopped the rattler to 
talk turkey with the other. 

With a fast representation of how 
good I was, spread on a little thick at 
times to show how to build up a sales 
talk, this manufacturer landed me on 
his sales force. He was the whole 
works in his organization. Told me 
twice he had no General Sales Man- 
ager ... no doubt with the purpose 
in mind of holding that out as bait 
for me to go with him. 

Bow To Get Distribution 

He requested me to go to a town 
about 100 miles away and work with 
his jobber's salesmen there for two 
weeks. 'This jobber had just taken on 
this manufacturer's line and had no 
distribution. "Easy pickings," thought 
I, "for if the jobber's salesmen are 
any good at all. with mv ablp assist- 
ance, we'll get distribution all right, 
all right." , , 

Got into the town a little late on 
Monday ... too late to go out with 
jobber's mpn. arid 8pp»>^ part of day 
chinning with the jobber on all the 
topics under the sun. This jobber im- 
pressed me as being pretty dumb 
'cause after two or three hours of 
smoking and talking he asked me what 
firm I was with and what were my 
plans. I coached him on how to put my 
manufacturer's brand over and told 
him that I trusted he had good sales- 
(G>ntini4«i in next column) 



BAYL'K BBANDS BUILD BUSINESS 

Bavuk Philadelphia Perfecto 
Havana Ribbon 
Mapacuba 

Charles Thomson 
Prince Hamlet 



men equal to the task, and that I 
would go out with his men and ob- 
serve if they really knew how to sell. 
After telling him that in simple ABC 
language, he still wanted to know 
what I was there for . . . terrible the 
thickness of some folks' cranium. 

Put in a real full day next day with 
one of his salesmen and left him about 
2:30 P. M. to go back to the hotel to 
write some letters to my firm. I had 
the situation sized up properly in a 
jiffy . . . what my brand needed was 
some newspaper advertising. The 
dealers were saying they had no call 
for the brand but would buy if they 
did have a call. Presto! Create the 
call by advertising and then take 
orders from the dealers. 

In his next installment 'In-again- 
out-again Alex" tells how the Boss 
received his suggestions for a sure- 
fire, double-action distribution plan. If 
you have followed the Memoirs so far, 
perhaps you can guess. If you haven't 
been reading these illuminating essays, 
your education has not only been 
neglected; it's positively moth-eaten. 
Let Alex Smart show you how a big 
time modern 8upersa1*»R"»an doe«i it — 
in his next chapter.— THE EDITORS. 




Tom AUely Passes Away 
HOMAS A. ALLELY, well-known cigarette and 
tobacco salesman in this district, passed away 
at his home, 131 Iladdon Avenue, Collings- 
wood, X. J., on December 28th, following a 
short illness. On December 17th Tom was domg some 
electrical work in the basement of his home in pvopara- 
tion for the holidav festivities when he received a slight 
shock which cansed him to fall from the ladder, trac- 
turino- his collarbone and ribs. Later septic poisoning 
developed, which resulted in his untimely death. 

Tom was district representative for the diristian 
Peper Tobacco Co., St. Louis, at the time of his death, 
and had been instrumental in o])taining s])lendid dis- 
tribution and sale in eastern Pennsylvania, southern 
New .Jersey, Delaware, :Maryland, District ot Columbia 
and Vir<ania for Listerine ci-arettes, AVellington and 
Del Monle smoking tobacco, and the other fine products 
of the Christian Peper Co. 

P^arlv in Tom's business career he had been associ- 
ated with the Falk Tol)acco Company, later with the 
Tobacco Products Corp., and still hiter with the Union 

Tobicco V o 

Tom was one of the best liked salesmen m this ter- 
ritory and had a host of friends who esteemed him 
hii?hly for his fine sense of fairness in all his business 
reTations, and he will be sadly missed by all who knew 
him. He was active in the civic atfairs of his home 
town and was the founder and past president of the 
Crescent Republican Cliil) there. He was a member of 
Apollo Lod-e, F. and A. M., of Philadeliihia, the Tall 
Cedars of Lebanon, the Elks, and the Tobacco Sales- 
men's Association. 

Funeral services were held on January 2d Irom 
his late residence in Collingswood, with interment in 
Evergreen Cemetery. He was fifty-five years old. 
Surviving? him are his widow, Helen; one son, Harold; 
two brothers and two sisters. 



Kentucky Markets Reopen and Close 

Governor p]hringhaus, of North Carolina, declared 
the burlev market holiday at an end on January 7tli, 
following* the close of the markets early in December 
because of dissatisfaction over prices obtained, and the 
markets reopened on Monday, January 8th, but dissat- 
isfaction was immediately expressed as to the prices 
again prevailing and markets in Lexington, Ky., w^ere 
promptly closed again. 

First sales at Lexington indicated a price trend of 
around $12 a hundred pounds, practically the same as 
in December, and the minimum price figure set in the 
burlev marketing agreement signed the ])revious week. 

At Richmond prices of around $12.50 to $13 were 
indicated and growers who expressed themselves 
seemed satisfied. Those at Carrollton shouted dowTi 
the auctions before a definite price trend could be 

learned. 

An average price of 11 cents a pound was obtained 
for tobacco sold between 9 A. M. and 1 P. M. on the 
hurley market at Abingdon. Prices were about the 
samethere as when the market was closed in December. 



A. Jacobson, well-known city salesman, has become 
associated with Geo. Zifferblatt & Co., eflfective January 
ist, and will promote the sale of Habanollos in Phila- 
delphia in the future. Mr. Jacobson was formerly asso- 
ciated with the Congress Cigar Company here, and 
later with the firm of Frings Bros. Co. 

r6 



Under Billy Penn's Hat 



Paul Brogan, vice-president of Yalin & McDonnell 
Ci^-ars, has been confined to his home with a severe cold 
for the past two weeks, but is expected to return to his 
desk today. 

William Lakin, factory representative of Waitt & 
Bond, Inc., is spending some time among the retailers 
here promoting the distribution and sale of the new 
and improved Blackstone Junior and other sizes of the 
Blackstone line, wutli good results. Yahn & McDonnell, 
local distributors of the brand, report a fine increase 
in demand for the Panatela Extra size, since the new 
price of two-for-fifteen-cents was established a short 
time ago. 

Frank Flanigan, well-known cigar salesman, be- 
came associated with M. Marsh & Son, Wheeling, \V. 
Va., on January 1st as factory representative for that 
firm in eastern Pennsylvania, except Philadelphia, and 
is now making a tour of his territory boosting the dis- 
tribution and sale of Marsh products with considerable 
success. Frank is well known in this territory, having 
been previously associated with the Mazer-Cressman 
Cio'ar Co., the H. Sonimer Co., Inc., and Otto Eisenlohr 
& Bros. For the past few months Mr. Flanigan had 
been doing missionary work for the Marsh firm under 
the direction of their sales representative, W. A. 
Copple. 

You can always depend on seeing an attractive and 
attention-arresting window display in the M. J. Dalton 
store windows at 617 Chestnut Street, and last week 
John Flanigan, the genial manager of the stand, had a 
figure of an English squire in the window rocking back 
and forth and with a satisfied smile of contentment 
patting a pocketful of those good Marcello cigars. This 
display attracted a vast number of window-shoppers, 
and according to the sales records a goodly number of 
them found their way inside the store and bought Mar- 

cellos. 

Another attractive window at this stand last week 
displayed the Mint Perfecto, another good local five- 
cent brand, wuth good results. 




**L'Africana" First Time on Air 

^-IITII Rosa Ponselle and Giovanni Martinelli 

I heading the cast, Meyerbeer's opera, 

II *'L'Africana," was broadcast for the first 
time from the Metropolitan Opera House over 

combined coast-to-coast NBC red and blue networks 
last Saturday. *'L'Africana," carried to the radio 
audience in fts entirety, through the courtesy of the 
American Tobacco Comjiany, was not performed by 
the Metropolitan Opera Company last year and never 
has been heard on the air from the famous opera house 

before. 

Tullio Serafin crmducted the opera, which was 
sung in Italian, and Miltcm Cross and John B. Kennedy 
filled the time between the acts with a narration of the 
stage action and reminiscences of Metropolitan Opera 
stars and events. Over eighty stations broadcast the 
Metropolitan series sponsored by the makers of Lucky 
Strike cigarettes. 

The Tobacco World 



News from Congress 

(Cotiiimied from Page 6) 



tmmi^. 



substantial foreign markets if economic re ationships 
wi h n the United States are to be brough mto easy 
nance including tobacco and other agricultural prod- 
ucts, mAch-mery, automobiles, etc., some of which might 
continue to carry protection. . ^ , • 

In the next grade would come those industries 
which on the whole have shown the power to sustam 
lliemselves against foreign competition witliout as- 
sistTncey which employ large numbers o people and 
which tmn out satisfactory products at reasonable 
i.rices During the present emergency, however, these 
industries would be protected against any marked in- 
crease in foreign competition. 

Continuing along this line, tl\e f ''sequent gradeg 
would include those industries which are of succeed 
iujrly less importance to the economic welfare ot the 
cmmtrv, winding up with a group held to be not 
adapted to the American economic environment. 

On the basis of this classification, and possessed 
of power to make changes in duties the President, 
under the proposed program, could develop a long- 
erm connnercial policy for the country, including the 
negotiation of reciprocal agreements wjtli other J^- 
ernments, recent attempts to do which have fa'l« of 
success because of the inability to develop "trading 
points." 

Condossis Files Schedvde 

Tiic Condossis Tobacco Co., New York City, which 
was placed in involuntary bankruptcy some months 
ago, filed a schedule of assets and liabilities in New 
York City last week, disclosing liabilities of H),.i-» a'H 
assets of $22.5,495, including stock in trade, patents and 
copyrights of $150,000. 



Program for Tobacco Growers 

{Continued from page 8 ) 



1 



vear including rental and benciit payments will be 
iulv 50 I'er cent, larger than the returns last season, 
iespite lie inferior .^inlity of th- 1!»:!:! crop m some 
istruTts 0„ the same basis, it is expected liat tiie 
otal returns for .lark air-cure.l tobac.o wdl be more 
ha". 50 per cent, larger than the re urns 1- f^^ on^ 
The dark air-cure<l Ivpos include dreeii Ki\ei tine 
Sucker and Virginia inn-cured. The fire-cured types 
iliclude Kentucky an.! Tennessee dark lire-cured, Hen- 
derson stemming and Viigima lire-cured 

I have attempted to sketch in broad outlines the 
situation generallv and with reference to particular 
^^es of tobacco. • We believe that a «o"";l .P^f,^^^^^ 
has been evolved for tobacco growers Making these 
fundamental adjustments ot supply .. to most 
..ITective weapon in the han.ls ot tlie gro«e. « ' ^ «' 
to achieve better prices. In the past, individual 
g°rowerrhave been linable to make such ^^ 
until prices dedine.l to very low levels, as he r neigh- 
bor would increase production to profit by their re- 
duction. 

January IS, 1934 



MURIEL 




CIGAR 



Full 
Size 




5^ 



Long 
Filler 



Exceptional cigar 
quality for a nickel 



Other sizes 



I.onftfellows 
P«r(ccto» . 
.\rUtocr«t». 



3 (or 25^ 
2(or25< 



Mfd. bv f- tOaiLLABD CO. t INC. 



^ 



J 



TOBACCO TRADE ORGANIZATIONS 



TOBACCO MERCHANTS ASSOCIATION 
OF UNITED STATES 




TF<;«;F a BLOCH. Wheeling, W. Va. ••■■•• 

CHARLES J FISENLOHR. Philadelphia. Pa. .. 

^jl'uVtuCllTE^STElS. New York. N. Y 

WILLIAM BEST. New York. N- ^ ..^.... 

MAJ. GEORGE W. HILL. New York. N.Y 

GEORGE H HUMMELL. New Vork, N. Y 

H H SH ELTON. Washington. D.C 

WILLIAM T. REED. Richmond. Va. 

HARVEY L. HIRST. Philadelphia. P* 

ASA LEMLEIN, New York. N. Y. 

CHARLES DUSHKIND. New York. N. Y. ....... 

^" Headquarters. 341 Madison Ave.. 



wS'"-5"! 

Ex-President 

;'.■.■;.'. v.. . . . .Vice- President 

.di'airai'an Executive C^™.'"*? 

Vice-Pres dent 

Vice-President 

Vice-President 

Vice-Preaident 

Vice- President 

Treasurer 

Gjunsel and Managing Director 
New York City 



ALLIED TOBACCO LEAGUE OF AMERICA ^^^^^^^^ 

W. D. SPALDING. Cincinnati. Ohio ■.■.'.".V.'.V.Vici-President 

aiAS. B. WITTROCK. Cincinnati. Ohio Treasurer 

5f,?rSgSE/BufeTJiL.ii;o.;io-/.:.v.:v./.:-.^^^^ s«r.ua 

ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS 

JOHN H. DUYS. New York City .V.'.VFirst Vice-Presider.» 

MILTON RANCK. Lancaster. Pa i' !:.:... Second Vice-President 

D. EMIL KLEIN. New York City ._ Secretary -Treasurer 

LEE SAMUELS, New York City 

NATIONAL BOARD OF TOBACCO SALESMEN'S 

ASSOCIATIONS 

President 

First Vice-President 

.......Second Vice President 

Secretary -Treasurer 



JACK A. MARTIN. Newark N. J. .;- 

ALBERT FREEMAN. New York. N. Y 

IRVEN M. MOSS. Trenton. N. J. •;;•■•■:•;;•;• 
ABE BROWN. 180 Grumman Ave.. Newark. N. J. 



NEW YORK CIGAR MANUFACTURERS' BOARD OF 

TRADE 

President 

ASA LEMLEIN .V."'.;"". Vice-President 

SAMUEL WASSERMAN 

THE NATIONAL ASSOCIATIONS OF TOBACCO 

DISTRIBUTORS 

SA?)^A1^5'V4ni^nt;;ome;vst:.jv;.ey'city:N.j::::: 

E ASBURY DAVIS. Baltimore. Md 

E W HARRIS. Indianapolis. Ind. 

JONATHAN VIPOND. Scranton. Pa 

GEO B SCRAMBLING, Cleveland. Ohio 



President 

J^ecretary 

Vice-President 
Vice-President 
.Vice-President 
Treasurer 



Establiihed 1886 



"BEST OF THE BEST 



99 




M„»f.ctur,d b. ^ SANTAELLA & CO. 

Office, 1181 Broadway, New York City 

FACTORIES: Tampa and Kep W«3t, Florida 



OUR HIGH-GRADE NON-EVAPORATING 

^"^^"^ ^JliXSJcL n..Uow .-d .-ooth .n ch.r.ct.. 
and Impart a moat palatable flavor 

FUVORS FOR SMOKING and CHEWING TOBACCO 
FRIES & BRO.. 92 Reade Street. NewYorkJ 



^yjfjiuiiiuiitijiiiim^jitvmj^^^ 



Classified Column 

The rate foi this column t« three cef»U (3c.) a word, with 
a minimum charge of seventy-five cent. (75c.) payable 
strictly in advance. 



:?»v.r?s\ir^f'»M:dl^!*5Mfi 



^^if^ssrsSrm 



^!gW51g^ 



POSITION WANTED 



CIGAR SALESMAN COVERING EASTERN PENNSYLVA- 
NIA and Local Territory desires connection. Large following. 
Address Box No. 580, "The Tobacco World." 



Newspaper and magazine advertising executive, thoroughly 
experienced, formerly with local newspapers and agencies, and also 
advertising manager. Position with firm desiring an advertising man, 
salesman or assistant to manager. Knows marketing, merchandis- 
ing and distribution. Salary not as important as opportunity to 
demonstrate actual worth and ability. References the highest. 
Address, F. H. Riordan, 5915 Webster Street, Philadelphia, Pa. 



CIGAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON 
Automatic Machines, wants a position. Also instructs beginners. 
Address Box No. 558, "The Tobacco World." 



FOR RENT 



OFFICE AND FLOORS FOR CIGAR MANUFACTURING OR 
STORAGE — No parking restrictions; good location; low rent; 
freight elevator and loading platform. Will divide. Metals Coating 
Company of America. 495 North Third Street, Philadelphia. 



HAVANA CIGARS 



Tobacco Merchants' Association 

Ti • 1 .• "D «^«,, 341 Madison Ave. 

Registration Bureau, new york city 



BEER WITHOUT CIGARS. IS LIKE KISSING WITHOUT 
LOVE— Adopt as your slogan, "Kiss your beer, but love your ci- 
gars." Specially those Havana blended, "Good to the last Puff," 
manufactured by A. Ramirez & Co., Post Office Box 1168. Tampa, 
Fla. Write them for particulars today. 



Schedule of Rates for Trade-Mark Services 
Effective April 1, 1916. 
Registration, (see Note A), 
Search, (see Note B), 

Transfer, 
Duplicate Certificate, 



$5.00 
1.00 
2.00 
2.00 



Note A-An allowance of $2 will be made to members of the Tobacco Mer- 
chants' Association on each registration. .... _«:_„ «* -,«,» 

Note B-If a report on a search of a title necessitates the reporting of inore 
than ten (10) titles, but less than twenty-one (21), an additional charge of One 
Dollar ($1.00) will be made. If it necessitates the reporting of more than twf"*^ 
(20) titles, but less than thirty-one (31). an additional charge of Two DplUr. 
($2 00) will be made and so an additional charge of One Dollar ($1.00) will D« 
made for every ten (10) additional titles necessarily reported. 



REGISTRATIONS 

PYPECIGAR:— 46,284. For cigars. December 30, 1933. Alles & 
Fisher, Inc., Boston, Mass. 

CIGAPIPE: — 46,285. For cigars. December 30, 1933. Alles & 
Fisher, Inc., Boston, Mass. 

GLEN ROYAL:— 46,282. For cigars. Xovember 22, 1933. Consoli- 
dated Lithe. Corp., Brooklyn, N. Y. 

LUDGATE: — 46,283. For cigars. Xovember 22, 1933. Consoli- 
dated Litho. Corp., Brooklyn, N. Y. 



" RENEWAL REGISTRATION 
EL PRANO:— 46.821. For cigars, cigarettes and tobacco. Re- 
registration by Webster-Eisenlohr Inc., New York, N. Y., Decem- 
ber 27, 1933. (Originally registered on February 9. 1900. by Otto 
Eisenlohr & Bros. N. Y., predecessors to Webster-Eisenlohr Inc.) 



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says an advertiser. 



^\^^\ 
T^^^^ 



FEBRUARY 1, 1934 



VOLUME 54 





Jnanl 






COMMON SENSE 



The importance of attractive and dependable containers for 
fine cigars is recognized by the progressive cigar manufacturer. 
Generally the brands that are increasing their goodwill in this 
present analytical market are packed in the ne^v improved 
AUTOKRAFT cigar boxes. 

Cigar Manufacturers who have not investigated the value of 
the merits and economies of the splendid and inviting package 
may obtain complete details promptly by addressing the 
AUTOKRAFT BOX CORPORATION. 




Phila., Pa. 
Hanover, Pa^ 
Cincinnati, Ohio 



York, Pa. 

AUTOKRAFT BOX CORPORATION Chicago, iii. 

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^^ToN THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PH.UA.. PA. 



After all 
"nothing satisfies like^ 
a good cigar ^ 



WOODEN BOXES 

Are the Only Natural Humidor for Cigars. 



THE TOBACCO WORLD 



Pack your cigars in wooden boxes and preserve 
their delicate aroma, mellowness and flavor 
right up to the time they are passed over the 
counter to the customer. 

Discriminating cigar smokers prefer to select 
their favorite brand from a wooden box— and it's 
good business to cater to the dealer and con- 
sumer by packing your cigars in wooden boxes. 



WHEN BUYING CIGARS 

Remember rhat Regardlcfts of Pri 

THE BEST CIGARS 

ABM PACKIB in 

WOODEN BOXES 



Vol. 54 



FEBRUARY 1. 1934 



No. 3 




The TOBACCO WORLD fuis signed the President's agreement and 
is operating under NRA Code, gladly and wholeheartedly co-operating to 
the fullest extent in the Administrations effort to promote industrial re- 
covery. 



VER hear the old classic tale of the battle that 
was lost for the want of a horseslioe nail? Ever 
know a man who neglected a cold that devel- 
oped into fatal pneumonia? Ever watch a 
business go slowly but surely to pot because its 
Micawber-like owner w as always waiting for something 
to turn up, instead of doing something to cure what 
was wrong with the business! Those are some of the 
questions we are prompted to ask cigar people after 
we have done some thinking over the year recently 
closed and a few of its immediate predecessors. If 
you think those questions, as applied to the present 
condition of the cigar business, are destructive of the 
best interests of that business, go ahead and sue us, 
as Eddie Cantor would say. But, if you take our 
word for it that, lamenting the sad decline of an honor- 
able industry, we are actuated solely by motives of 
helpfulness, you will read along to discover what 
thoughts could have inspired the questions in the 
opening sentences of this editorial. 

It was a remark of a cigar man that started the 
train of thought. He said that the cigar business had 
probably hit bottom because 1933 showed a decline of 
only a little over 2 per cent, in cigars, as against a 
drop of 16 or 17 per cent, in 1932. He blithely took 
for granted that the curve would begin to bend in an 
upward direction in 1934. When we asked what was 
the basis of his contidence, his reply was that the cigar 
business would automatically recover with business 
generally. If that is the basis of his planning, we 
know what is going to happen to his business. And 
so do you. 

Cigar men proved during last year that they can 
do things when they are virtually compelled to do 
them. One good job they did was tlie formulation of 
their code, and a remarkably good job that was. 
Another of their accomplishments was their record of 
victories in legislation affecting tobacco. 

^m^m.^ ^^^^^M mm^M^m 

Cj) Ct3 [t3 

P THEY had been forced to face a sudden 
staggering drop in cigar consumption, maybe 
they might have done something about that, 
too. Here's what we are driving at. To be 
sure, a decline of two and a fraction per cent, might 
be construed as an encouraging sign, when it is com- 
pared with greater decreases in preceding years. But 
the cigar business would never get anywhere if every- 
body in it followed that method of reasoning. The 
inescapable fact is that during the last four years 




cigar sales dropped off to the tune of 33 1/3 per cent. 
And it is no defense when vou blame this on the de- 
pression. Cigarettes decreased only about 9 per cent. 
And there is a difference between the two situations. 
The one-third decrease in cigar sales spelled a one- 
third decrease in cigar smoking. But the less than 
one-tenth decrease in machine-made cigarette sales 
w^as accompanied by an actual increase in cigarette 
smoking, the **roll your own" phenomenon more than 
making up the discrepancy. 

Perhaps it would have been a good thing for the 
cigar business if this big slump had occurred at one 
fell swoop, in one year, instead of being spread over 
four years. The cigar people, who have shown that 
they can beat a situation when they are forced to do 
it, might then have done something, say in 1930, and 
the business would be in a better condition right now. 
As it is, they have allowed the loss of a horseshoe nail 
to handicap them in their battle for sales. They have 
allowed a cold to develop to the point where pneumonia 
is threatened. Like Micawber, they are w^aiting for a 
general business recovery to bring back their business 
automatically. 

Tow^ards the end of 1932 a movement w^as started 
for the promotion of cigar smoking. By the early 
spring a plan had been formulated, and the wide- 
awake men in the industry quickly pledged to do their 
part in its furtherance. But evidently there were not 
enough wide-awake men in the cigar business, because 
the program was never started. It is known that some 
stayed out because they believed the big fellows would 
be selfish and gather in the best results from the cam- 
paign. Of course, they would be selfish. So would 
the little fellow^s. That's business. But the foundation 
of the selfishness of everyone, big and little, was laid 
in the simple fact that each could profit f ro,m a revival 
of cigar smoking. It is a matter of simple arithmetic 
that, as the customers grow in any line of business, 
there is a simultaneous improvement in the chance 
for sales of every individual engaged in that business. 

Some cigar men cried about the way smokers had 
been converted to the cigarette. They are probably 
the same men who try to sell their owti cigars while 
smoking cigarettes. Ever see a felt hat manufacturer 
wearing a derby I Do you think Lawrence Fisher, 
president of Cadillac, drives a Chrysler! That spec- 
tacle of a cigar man smoking a cigarette is an exhibi- 
tion that should give anyone pause. If you ask us, 
it is an example of the world's worst in business in- 
telligence. Harsh words, me lads, but the present 
status of the cigar business demands harsh words if 
it is to be properly described. 

Suppose the cigarette people did cut into the ranks 
of the cigar smokers. By the same token, the **roll 
your own" practice cut into theirs, but did you hear 
them crying about it! They kept on after business 
just the same, with the result that they showed a nice 
gain (nearly 8 per cent.) last year over 1932, and they 



The TOBACCO WORLD (established 1881) is published by Tobacco World Corporation; Hobart B. Hankins, President and Treasurer; 
Gerald B. Hankins, Secretary. Office, 236 Chestnut Street, Philadelphia, Pa. Issued on the 1st and 15th of each month. Subscriptions, avail- 
able only to those engaged in the tobacco industry, $2.00 a year, 20 cents a copy; foreign, $3.50 a year. Entered as second-class mail matter, 
December 22, 1909, at the Post Office, Philadelphia, Pa., under the Act of March 3, 1879. 



are starting; out this year with the determination to 
get back, if they can, to their all-time high mark, set 
in 1930. And did the cigar people ever do anything 
to create an entirely new market for their product as 
the cigarette people^ did when they successfully added 
all womenkind to the ranks of buyers and prospective 
buyers ? 




UR advice to the men in the cigar indus- 
try is to do something for themselves, and 
to do it right away. It would be a mortal sin 
not to follow up the organization work made 
necessary in the formulation of the code, by the opera- 
tion of a definite plan to re-educate the public to the 
truth that **a good cigar is a smoke." 



How Many "Roll Your Own" Cigarettes? 

No Accurate Figures, but Here's one Guess 




MOKERS of the United States consumed be- 
tween 40,000,000,000 and 55,000,000,000 roll- 
vour-own cigarettes in the tiscal year ended 
June 30, 1933, between two and one-half and 
three times the number smoked in the twelve months 
ended June 30, 1931, reports the Wall Street Journal. 
Consumption of the hand-made cigarettes in the 
latter vear was between 17,800,000,000 and 19,500,000,- 
000 cigarettes. In the vear ended June 30, 1932, be- 
tween 36,632,000,000 and 46,700,000,000 cigarettes were 

smoked. 

These figures are obtained by analysis of the Gov- 
ernment 's tax receipts on sales of cigarette paper 
packages, together with sales of non-taxable packages, 
those containing not more than twenty-five cigarette 

papers. 

Actual number of roll-your-own cigarettes con- 
sumed cannot be gauged with entire accuracy because 
the number of papers contained in the non-taxable 
package varies between sixteen and twenty-four. 

On the basis of the larger figure, however, one- 
half as manv of the hand-made cigarettes were con- 
sumed in the last fiscal year as the 109,000,000,000 ma- 
chine-made cigarettes. 

Several years ago there was little demand for the 
smaller, non-taxable packages of papers, and a con- 
siderable number of the larger, taxable packages were 
sold; more recently, however, one or more of the 
smaller packages have been given free with the to- 
bacco used for this purpose as smokers began to seek 
economy. 

The number of non-taxable packages of papers 
used jumped from 211,492,481 in the 1931 fiscal year 
to 1,261,276,051 in the 1932 fiscal year, and to 1,915,- 
575,912 in the last fiscal year. 

On the basis of sixteen sheets to a package, the 
1931 total of non-taxable packages provided wrapping 
for 3,383,879,696 cigarettes; on the twenty-four sheet 
basis it provided for 5,075,819,544 cigarettes. 

Totals for the succeeding vears, on the same basis, 
show 20,180,416,816 and 30,270,625,224 cigarettes re- 
spectivelv in 1932 and 30,649,214,592 and 45,973,821,888 
in 1933. " 

To these totals must be added the ready-made 
cigarette consumption represented by the sale of 
papers in taxable books. In 1933 this amounted to 
about nine billions, converting the $918,552.84 of gov- 
ernment tax receipts from this source at the rate of 
one hundred sheets for one cent. The Federal tax is 
one-half cent for package of more than twenty-five, 
but not more than fifty sheets; one cent on books of 
more than fifty, but not more than one hundred sheets, 
and one and one-half cents on books of more than one 
one hundred sheets, but not more than one hundred 
fifty sheets. The maximum number allowed under each 



tax division usually is placed in the i)ackages making 
the tax, in effect one cent for one hundred sheets. The 
Government obtained $1,645,241.95 from this tax in 
the 1932 year, and $1,441,826 in the preceding year. 

The following table shows the number of cigarette 
papers used in each of the last three fiscal years, with 
the number of non-taxable books converted at the 
maximum rate of twenty-four sheets per book, and tax 
collections converted at the rate of one hundred sheets 
per cent: 

Year Taxable papers 

1933 9,185,528,400 

1932 16,452,419,500 

1931 14,418,260,000 

With upwards of 35,000,000,000 cigarettes ap- 
parently diverted from the ready-made market into 
the roll your own, the Federal Government suffered a 
loss of some income which would otherwise have been 
available to it. 

Thirty-five billions of ready-made cigarettes would 
mean revenue taxes of $105,000,000. These cigarettes 
would have contained about 88,000,000 pounds of to- 
bacco. The hand-made cigarettes contain less tobacco 
than the machine-made smokes. 

Estimating about one-fourth less tobacco used in 
the roll-your-own cigarettes, the increase in consump- 
tion in this field in 1933 over 1931 required about 
66,000,000 pounds of tobacco. 

Tax on this kind of tobacco is eighteen cents a 
pound, so the apparent increase added only $11,880,000 
to the Government's revenue, or $93,120,000 less than 
would have been obtained had a similar increase taken 
place in machine-made cigarette smoking. 

This applies only to the 1933 increase over 1931. 
The 1932 gain over the preceding year would have 
shown somewhat similar results. 

Cigarette manufacturers have, for some time, 
maintained that the consumption of cigarettes has not 
declined during the depression, although Government 
statistics showed lower output for machine-made cigar- 
ettes. This, the companies insisted, was due to diver- 
sion into the roll-your-own smokes, a contention which 
appears to be amply supported by statistics. 



BROWN & WILLIAMSON HUMIDOR 

The Brown & Williamson Tobacco Corporation is 
offering smokers an attractive humidor box for cigar- 
ettes. The box, designed by E. C. Sh>an, of Chicago, is 
executed in green and black molded Textolite. Although 
the General Electric Company has announced the de- 
livery of some 100,000 of these boxes, the Brown & 
Williamson Tobacco Corporation has estimated that 
approximately one-quarter of a million boxes will be 
distributed during the campaign. 

Th€ Tobacco WoHd 




LIGGETT & MYERS EARN $16,731,175 

HP] Tiiggett & Myers Tobacco Company, manu- 
facturers of Chesterfield cigarettes. Granger 
smoking to])acco, and many other well-known 
tobacco products, reports net income for the 
vear 1933 of $16,731,175, a decrease of only $6,344,037 
from the net of $23,075,212 earned in 1932. After 
charges. Federal taxes and 7 per cent, preferred divi- 
dends, this is equivalent to $4.84 a share (par $25) on 
3,136,939 shares of combined common and common B 
stocks, as compared with net of $23,075,212, or $6.85 
a share, on the common and common B in 1932. 

Since cigarettes sold for the greater part of the 
year 1933 at $5.50 per thousand, which is generally 
understood to be the point at which profits for the 
manufacturer vanish, it is l)elii?ved that the Liggett & 
]\lyers Company has enjoyed a substantial increase in 
the sale of their cigarettes during the past year in 
order to show such a substantial figure for net gain. 

The 1933 report shows that during the year the 
company purchased 8373 shares of its own preferred 
stock at a cost of $1,124,263. This is the first time that 
such purchases have been made. 

Current assets of the company as of December 31, 
1933, were $157,742,218, including United States Gov- 
ernment and otlier securities amounting to $57,100,755, 
and cash of $12,625,706, while current liabilities 
amounted to $4,851,276. At the end of 1932 current 
assets were $160,6()3,914, including $59,399,626 United 
States Government and other securities, and cash of 
$20,727,861, whih' current liabilities at that time were 
$6,790,004. 

Tjast week directors of the company declared the 
regular quarterly dividend of $1 a share on the com- 
mon and common B stocks and an extra dividend of 
$1 a share on both chisses of stock, ])oth payable March 
1st to stockholders of record February 15th. A similar 
extra dividend has been paid at this time for the past 
several years. 



OLD GOLD'S NEW CAMPAIGN 




CIGARETTE ADVERTISING 

OST of those who have tried their hands at 
cigarette advertising think it is the toughest 
baby in the whole sales promotion family. 
. .'. Until the psychologists give the cigar- 
ette advertiser a new vocabulary he is badly stymied 
in describing the merits of his particular brand. . . . 
Wouldn't it be a revolting spectacle if Mr. Hill and 
.Mr. Toms and Mr. Keynolds got snarled up in a (luarrel 
over which of their cigarettes does us the least harmf 

And so, until psychology furnishes a lot of new 
words and ideas about taste, the cigarette makers must 
continue to favor the good old Sock-in-the-Eye school 
of advertising. They must be spectacular and repe- 
titious. ... I sliouhl like to believe that the big 
cigarette advertisers have begun to realize that so far 
as the taste api)eal is concerned they are pretty much 
all in the same boat. 

For a long time their copy has indicated that their 
main problem is the problem of Attention. They are 
getting their best effects by associating their brands 
with subjects prominent in public thought. If Mr. 
llill is interested right now in convincing smokers that 
his cigarette is popular with the best people, why 
shouldn't he tie up with grand opera and symphonies! 

Note. — The foregoing are extracts from an article, 
*'ln Defense of Mr. Hill," by Allan P. Ames, in the 
current issue of Printers* Ink. 

FibrwMty i, 1934 





AKE PLACID, Northern Lights, Lumber Jack, 
Beaux Arts 1984, Everglades, Agua ('aliente, 
Miami Beach — those were the titles of the ex- 
hil)its in the recent fashion window display on 
Okl Gold cigarettes in the Schulte store at Forty-second 
Street and Fifth Avenue, New York City. The display 
preceded the P. Lorillard (V)m])any's intensive cam- 
yiaign of promotion on Old Golds scheduled for Feb- 
ruary. Outstanding window and counter displays, a 
new release in the newspapers and a change in the 
radio program will be features of the campaign. 

Dick Powell, young star of tlie musical films, has 
been signed for three perfornumces as singing inaster- 
of-ceremonies for the new^ Old Gold series with Ted 
Fiorito's famous West Coast orchestra, opening 
Wednesday, February 7, at 10 P. M., E. S. T., on a 
nation wide WABC-Columbia network from San Fran- 
cisco. It will l)e the first nation wide radio series for 
Powell, whose sudden rise to picture fame in a cycle of 
screen successes has been the talk of Hollywood lots. 

Selected from 140 competitors in a series of audi- 
tions, Kenneth Niles, youthful Californian, will an- 
nounce the new series. He will succeed David Ross, 
whose Commitments in the East prevented his going to 
California for the weekly broadcasts. 



BAYUK PHILLIES' BUSY PLANTS 



^=^ H. SCHULTE has joined the sales force of 
\fm Bayuk Cigars, Inc., and has been assigned to 
the Wisconsin-Minnesota territory. He was 
formerly with the company's Indianapolis 
branch. . . . Fred Brown, manager, and thirty-three 
members of his New York branch sales organization 
visited the factory recently, attended an enthusiastic 
sales meeting i)resided over by A. Jos. Newman, vice- 
president in charge of sales, enjoyed luncheon in the 
cafeteria, made a tour of the plant, and returned to 
New York. An outsider who merely got a look at the 
men remarked that the scintillating sales performance 
of the New York branch was no longer any source of 
wonder to liim. . . . ZoUa Bros. Co. is placing 
Phillies everywhere throughout tlie Chicago territory, 
in conjunction with Bayuk salesmen. . . . Eli Witt 
Tobacco Co. is putting Bayuk Phillies in the choicest 
dealer locations in West Palm Beach, Jacksonville, 
Miami and Tampa, assisted by B. W. Burnside and 
R. S. MacDermott, Bayuk salesmen. . . . H. Clyde 
Davis, of the Old Dominion Tobacco Co., Bayuk dis- 
tributor in tlie Norfolk territory, was a recent visitor 
at headquartiis. . . . Orders! W^ell, the factories 
are working on two shifts. 



The General Cigar C/o., inc., has appointed the 
J. Walter Thompson Co., New York, to handle all 
advertising of its White Owl cigar. This agency has 
been handling the radio advertising on White Owl. 



Whelan Unit Contois Grocery Chain 



Why 




T WAS learned last week that working control 
of the Acker, Merrall & Condit Conapany, New 
York Citv, grocery chain store business, dat- 
inL^ back *to 1820, and which was famous dur- 
ing the pre-prohibition era as a leading purveyor ot 
Ihf choicest grades of liquors and tobaccos has passed 
to the United Profit-Sharing Corporation, the one cor- 
poration saved to George J. AVhelan when he depres- 
sion and the collapsing stock market ot 1929 earned 
most of his enterprises into other hands. 

Associated with Mr. Whelan and United Profit- 
Sharing are prominent Wall Street interests, including 
several individuals who are indirectly connected with 
National Distillers Products Corporation, leading man- 
ufacturers of spirits. Mr. Whelan wi 1 "o personal y 
take an official position with Acker, Merrall & Condit, 
but his close associate, AVilUam Baeder former $100,- 
000 a year executive of United Cigar Stores Company 
of America, which Mr. Whelan formed and developed 
with the Duke-Ryan interests, will be vice-president 
of the reformed distributing concern. 

Work of Advisory Nature 

Despite his advanced years and his ill b?a|th of 
two vears ago, Mr. Whelan, who was invited into the 
situation by the Wall Street group because ot his 
knowledge of merchandising, is taking hold ot the 
proiect with the same enthusiasm that marked his 
activities when he built the United Cigar Stores and 
operated it until 1911. Since that date he has never 
held an official position with any company and his work 
with Acker, Merrall & Condit will be of an advisory 

^^ ^Some basis for the belief in Wall Street that Na- 
tional Distillers Products Corporation interests are 
concerned in the Whelan deal is seen in the fact that 
two of the directors of Acker, Merrall & Condit have 
their offices at Redmond & Co., Stock Exchange firai 
of 48 Wall Street, which has been prominently identi- 
fied with National Distillers and other liquor com- 
panies. In addition, E. A. Correa, one of the partners 
of the law firm of Breed, Abbott & Morgan, counsel for 
National Distillers, has taken an interest in the chain 
system. Llewellvn Powell, president of Acker, Merrall 
& Condit, is located at the Redmond office, as is 
Benjamin Gordon, a director. ^ ^^ . _, .. 

The interest of United Profit-Sharing Corporation 
in the chain svstem is believed to be between one-third 
and one-half of the outstanding stock. Smaller blocks 
of the stock are held by the individuals in the deal. 

Chain to be Nation Wide 

Mr Whelan was reticent when questioned yester- 
dav for details, but said that the group would open 
as'manv stores as could be efficiently operated. The 
chain will be nation-wide in scope and it is his hope to 
build a svstem which will rank in importance with 
United Cigar Stores. The company will not be a 
grocery chain, but will handle various other articles, 
the emphasis to be placed on higli-grade liquors and 
tobacco. It is possible the system will be divided into 
four geographical divisions through the formation or 
subsidiaries, for more efficient operation. Mr. Baeder, 
who was the real estate executive in the United Cigar 
Stores organization, is expected to supervise opera- 
tions. 



Mr. Whelan made it clear that his entrance into 
the undertaking is because he believes this is the op- 
portune time to launch a merchandising chain. As tar 
as he is concerned, it will not be a Wall Street venture, 
but a strict business operation in which he sees tlie 
chance to make some money. 

His success as a merchandiser may be gauged trom 
the fact that about thirty years ago he was running a 
little cigar stand in a hotel at Syracuse. He came to 
New York and opened a little cigar store which on its 
first day took in $3.47. This was the beginning of the 
United Cigar Stores Corporation, which was destined 
to do a gross annual business of $100,000,000. 

Once Worth $10,000,000 

His close associates were James B. Duke, whom 
he regarded as the greatest business man wjio ever 
lived, and Thomas F. Ryan. It was on the death ot 
these two that the burden of too many business duties 
began to weigh on the former cigar salesman. His 
own personal fortune is believed to have been $10,000,- 
000 at its best, and from this it dwindled to a very low 
figure when the depression carried Umted Cigar Stores 
and other concenis to receivership. 

United Profit-Sharing Corporation was one ot the 
smaller of the various Whelan enterprises, formed in 
1914 to engage in the business of redeeming coupons, 
certificates and other advertising devices. It has no 
funded debt. What remains of the former Whelan for- 
tune is principally invested in this company. 

Pennsylvania Class A Production Increases 

IGURES just released by the Internal Revenue 
Bureau disclose that 74,118,245 cigars, made 
to sell for five cents or less, were manufac- 
tured in Eastern Pennsylvania during the year 
1933. This is a decided increase over the previous 
year, when the output was 56,737,090. 

In Western Pennsylvania during 1933 there were 
2 924 495 Class A cigars manufactured as compared 
with 2,417,025 for the year 1932. . ^ ^ ^ , 

Class B cigars manufactured in Eastern Pennsyl- 
vania during 1933 totaled 396,600, a decrease of 141,260 
as compared with the previous year. Class C cigars 
manufactured in 1933 were 8,836,220, as compared with 
10,256,184 in 1932. These classes were not manufac- 
tured in Western Pennsylvania in 1933. 




Philip Morris Consolidated Report 

Philip Morris Consolidated reports for 1933 net in- 
come of $243,204 after expenses, taxes, etc., equivalent, 
after dividend requirements on the 7 per cent, class A 
stock, to thirty-two cents a share on 482,596 shares of 
common stock. This compares with $415,173, or sixty- 
eight cents a common share in 1932. Profit and loss 
surplus on December 31st amounted to $3,369,414, 
against $3,556,387 on December 31, 1932. 



Own Sales Story 

By WILLIAM BEST 
Vice-President, General Cigar Company, Inc. 




Scotten Dillon Dividend 

Scotten Dillon increased the dividend on the $10 
par common stock from thirty cents, paid November 
15, 1933, to forty cents quarterly, payable February 
15th to stockholders of record February 6th. 

Th4 Tobacco World 



N 1934 we plan to profit by a lesson which was 
brought home to us in 1933. This lesson is 
something which concerns not only cigars — it 
seems to me— but low-priced, branded conven- 
ience items of all sorts. With the small article, too 
often all thought of the dealer's attitude toward the 
product is overlooked. On what are called ** pick-up'' 
items, salesmen are too prone to talk nothing but de- 
mand, demand, demand— leaving the dealer vaguely 
thinking that there is some magic in it. 

Worst of all, such selling leaves him vague as to 
the quality of the article. No wonder the dealer has 
•••ot into the salesman's habit of thinking, somewhat 
fatalistically, ** Either it will sell, or it won't sell." 
Seldom, if ever, will he stop to think, ** Either I must 
do something to sell it, or it won't sell." 

And a great many manufacturers have fallen into 
the dealer's" and the salesman's way of thinking. The 
final result of such thinking is just this: If a producer 
«*oes out and spends a great deal of money advertising 
an article and still it isn't in demand, his money is 
wasted. This simply shows the absurdity of attempt- 
ing to put the whole burden of selling upon the adver- 
tising campaign. It takes respect for and belief in the 
product, implanted in the dealer's mind, in order to 
cash in on the advertising placed behind that product. 
We have alwavs insisted that our salesmen believe 
their own sales storv. Results show us whether the 
salesmen believe or don't believe that the product has 
the highest qualitv at its retail price, that it will show 
the retailer a good profit, and that if it is properly dis- 
played it will prove a real money maker for the dealer. 
But, beginning this year, we are impressing salesmen— 
throui^di talks and through messages planned to appear 
in our house magazine— with the necessity of taking 
time to promote the article itself to the dealer. Mailing 
pieces may help to sell the dealer on the value and 
merit of an article, but we believe the job can best be 
done by the salesmen. 

The salesman should build confidence by getting 
the dealer to try the article himself. Dealers actually 
welcome some selling knowledge— will remember it and 
pass it on. The unportance of inducing dealers to sell 
«iuality in an effort to back up advertising can hardly 
be overemphasized. 

The dealer is alwavs ready to lean on the adver- 
tising, secure in the belief that the article will sell, be- 
cause it is being advertised. The salesman comes to 
his store well infornuMl as to advertising schedules, 
oven equipped with tear sheets to sliow the dealer the 
full weight of national efforts bfliind the brand. Also 
he brings the dealer certain point of sale helps to tie 
in witirthe published a])p«'al to consumers. But all 
these are not enough. We have found that the article 
will not sell as it should, unless the dealer is completely 
informed and sold as to its inherent merit. 

Suppose the dealer has a customer for a standard 
popular five-cent cigar. That customer likes the cigar 

February i, igs4 



and smokes it regularly, until he goes into another 
store, doesn't find it handy and switches to something 
else. Perhaps he stays with this other brand and the 
first dealer has lost a steady customer. Now, suppose 
the first dealer had been thoroughly sold on this brand. 
Noting an interested customer, he might say, ** That's a 
real good cigar; 100 per cent, grade 'A' filler from vin- 
tage crops, and a silky Sumatra wrapper. It's one of 
my best sellers. ' ' 

It takes but a little information about a product 
to implant in the customer's mind belief in its quality 
and an appreciation in its real merit. And a customer 
sold in that way on quality, becomes a quality, rather 
than a price, buyer. He is likely to become a perma- 
nent customer of the dealer who takes the pains to sell 
him on specific quality facts. 

That little difference is of paramount importance 
with competition and the times what they are. Circum- 
stances have given the smoker many real good five-cent 
cigars. In fact, I don't believe there has ever before 
be'cn a time when there were so many real good five-cent 
ciirars on the market. As regards any number of small, 
low-priced articles, I am convinced that a similar situa- 
tion exists. . XI- J 

Oftentimes there can be little difference in the ad- 
vertising weight behind small articles sold under the 
various brand names. The advantage, I am inclined 
to believe, is likely to swing to those products which 
make a real effort to improve behind-the-counter sell- 
in.r Not onlv is it important to sell the dealer on the 
merit of your product, it is also necessary to convince 
him of the mutual benefits to be derived from proper 

Display space is at a premium and dealers cannot 
be bludgeoned into granting it. The dealer may have 
something he wants to push. All right; let him pusli 
it But it is possible to sell him on the wisdom of put- 
tin^ nationally known brands on the counter beside it. 
The well-known brand serves to advertise the brand the 
dealer wants to push, puts it in a more attractive light, 

and both get a break. ^.wu-*- 

We have found by test that a brand like'* White 
Owl" sells twice as well when prominently displayed 
on lop of the case as when out of sight. A demonstra- 
tion of this fact, beside the dealer's favored article, is 
likely to make him wonder whether he is smart to put 
our brand out of sight, where 50 per cent, of the people 
who might buy it, won't buy. ^ , ^ , , ,., , 

\nd here is another thought that dealers are likely 
to be open-minded about. If the wanted brand is out 
of si«rht and if the customer hesitates to ask for it on a 
nurchase involving a small sum, does the customer ac- 
tuallv switch to soniething elsef Or does the customer 
temporarilv accept a substitute and go next time to a 
store where he can conveniently pick up what he wants? 
We don't know. But the dealer doesn't know either. 
The answer is that he may lose a customer, and that is 
something that no right-minded dealer wants to do. 



The dealer, it seems to me, has as much at slake 
and stands to gain as nnich as the manufacturer 
through more intelligent promotion of nuiny low-priced 
articles. In the first place, no matter how small the 
article, quality is and always will he a hig selling factor. 
In the second place, it is appreciation of the inherent 
merit of the individual i)roduct and ability to sell it on 
that basis which distinguishes the merchant from the 
storekeeper. In the third place — in fact, there are a 
chain of benefits for tlie dealer — the merchant who does 
a good selling job and wins steady customers on small 
articles is the one whose advice carries weight on larger 
purchases. It is just another case of *'look out for the 
nickels and the dollars will take care of themselves." 

Bigger sales must have better outlets, and the lat- 
ter will liave to be made by giving more thought to the 
dealer. At the seat of the trouble is the salesman who 



thinks only of getting orders — the salesman who leans 
too heavily on the power and glory of demand-creating 
advertising and doesn't like to take time to sell the 
merit of the product. It is he who starts the dealer 
thinking along the same line. And if the advertising 
doesn't do what salesnum and dealer think it should do, 
there is no push behind the product at the counter. 

This lack of logic in such an impasse is apparent 
when we consider the indispula])le fact that a product 
of real value will sell — that is, it can be sold — without 
advertising. But, if the salesman and the dealer tell a 
consistent story of quality, and if that story is true, 
then the advertising carries that product along to big- 
ger things. And the profitable job that can be done by 
advertising still renuiins as big as you want to make it. 

The foregoing is reprinted, with permission, because of its interest 
to retail tc^acconists and salesmen who would not be likely to read it in 
the January 25th issue of Frintcr's Ink, where it originally appeared. 



Increased Payments for Burley Growers 




X RESPONSE to numerous protests over the 
prices being received for Burley tobacco, in- 
cluding a joint resolution of the House and 
Senate of the Kentucky (Jeneral Assembly 
memorializing the Government to take some action to 
relieve the situation, the Agricultural Adjustment Ad- 
ministration has announced that growers who agree to 
reduce acreage next year will receive increased ad- 
justed payments if the average price i'or the current 
season is below 12 cents. 

Production adjustment contracts arc now being 
signed by Burley tol)acco growers. Under these con- 
tracts, **the first adjustment i)ayment'' is based on the 
net sales value of tlie 1933 crop, (i rowers who agroe 
to reduce their i)roduction 33':$ i)er cent, are, under the 
terms of the contract, to receive a jiayment of at least 
10 per cent, of the value of their 1933 crop, and growers 
who agree to reduce 50 i)er cent, are to receive a ])ay- 
ment of at least 15 per cent, of the net sales value of the 
1933 crop. 

J. B. Hut son, chief of the Tobacco Section, ])ointed 
out that the first adjustment payments ])rovided for in 
Section 2 of the contract aie ''minimum j)ayments'' 
and will be increased if the entire Burley crop averages 
below 12 cents. 

*'The rates of adjustment payment,'' Mr. Hut- 
son said, **were based on a 12-cent jirice and are mini- 
mmn pa^Tuents. If the average jn'ice for the current 
season should be as low as 10 cents, the rate of the 
adjustment pa^nnent for those growers who reduce 33% 
per cent, will be increased from 10 ])er cent, of the net 
sales value of the crop to 25 ])er cent, and the rate for 
those who agree to reduce 50 jmm- cent, will be increased 
from 15 per cent, to 30 ])er cent. If the market ])rice 
should average 11 cents ])er jmund, tlie rates of the first 
adjustment payment would be increased to somewhere 
between the minimums provided in the contract and the 
increase stipulated in the event of a lO-cent average." 

The Tobacco Section has calculated that, with the 
market prices ranging between a lO-cent and a 12-cent 
level, the average return from the 19311 crop to growers 
who reduce 50 per cent, next season will be between 
14.25 cents and 15.05 cents for the entire crop and the 
average return to the growers who reduce 33/h per cent, 
will be between 13.35 and 13.80 cents. The lower 
amount is calculated on a 10-cent average and the 

i 



higher amount on a 12-cent average and in each case 
these represent minimum return on basis of the pres- 
ent program. These advanced ret u ins would include 
rental and adjustment i)ayiiients which would be dis- 
tributed before the oi)ening of the next marketing 
season. 

Under the terms of the production adjustment con- 
tract, these adjustment jmyments are to be made not 
later than Se])tember 15th, jirovided that the proof of 
performance by the ])roducer is submitted prior to 
August 15, 1934. Uertitication of the contracts will be- 
gin in July, Mr. Hutson said, and with ]iroi)er aid from 
producers it is ho]>ed that the disbursal of the adjust- 
ment payments will begin in September. 

*'TIiis does not moan that this is a guaranty of a 
specific ])rice to the individual grower," Mr. Hutson 
emphasized. "Obviously the ordinary dilYerentials as 
to trrade and other factors now prevail as thev have in 
the past seasons. It is still up to the grower to choose 
the best time to market his crop. But should any 
drastic ine<piities result in ])rices during the movement 
of the cro]), we shall consider equalization ])ayments to 
participating growers to remedy such ineipiities.'* 

Regardless of the j)rice lluct nations between a 10- 
cent average and a 12-cent average, Mr. Hutson as- 
serted that the ])ros])ects were such as to definitely 
assure the Burley tobacco-] u'oducing areas that the 
total value of the 19.').3 erop would be between 55 and 
()0 million dollars. This would mean that growers 
would receive a])proximately parity })rices for that por- 
tion of their cro]) which moves annually into domestic 
consumjition. The o]K'n market ]>riees would prevail 
for the remainder of the crop. The income from the 
1933 croji, including rental and adjustment payments 
with resy)ect to j)urchasing jjower, will be greater, with 
possibly three exceptions, than that of any crop of rec- 
ord. During the j)ast two years, the gross value of the 
Burley tobacco cro]) h;i^ Imcii M]>])roximately 39 million 
dollars for each year. 

The Tobacco Section is making an intensive study 
of the prices of th<' Burley markets. The average on 
all markets for the past week was near the 10-cent level, 
according to an analysis of the reports received from 
the sales supervisors on all the markets. The season's 
average is slightly under 11 cents, the official estimates 
reveal. 

The Tobacco World 



ARE YOU A 



Those untidy habits 

come from jangled nerves 




It's bad enough to look untidy— 
ill-groomed. 

But if s twice as bad when you 
think that those nervous habits 
are a sign of jangled nerves ... a 
friendly signal that says, "Find 
out what's the matter." 

So, if you catch yourself muss- 
ing your hair, biting your nails, 
chewing pencils — or suffering 
from any other of those countless 
little nervous habits — 

Get enough sleep and fresh air 
— find time for recreation. Make 
Camels your cigarette. You can 






cOi 



/fow are \C\\ IP 

*—•*—-- J I 1 



•''Wright. 1D34, a j"^ 

smoke as many Camels as you 
pl^ise, for Camel's costlier tobac- 
cos never jangle your nerves. 



COSTLIER TOBACCOS 



Camels arc made from finer, MORE EXPENSIVE 
TOBACCOS than any other popular brand of cigarettes! 




THEY NEVER GET 
ON YOUR NERVES! 

Vliyr ly I CAMEL CARAVAN ftataring Clmn Cray'm CASA LOMA Orchmttra and other Hmadlinera Every Tueaday and 
I UN t I n ! Thareday at 10 P. M. ,E.S.T.-9 P. M. . C. S. T. -8 P. M .M.S.T.-7 P. M. . P. S. T. , over WABC Columbia Network 



February i, 1934 



Under the terms of the marketing a«;reement with 
the principal buyers of Burley tobacco the buyers are 
committed to purchase at least 260 million pounds of 
the current crop at an average price of not less than 12 
cents per pound. The agreement also provides that 
*'each contracting buyer shall ])urchase in the usual and 
ordinary manner, except as to i)rices provided in the 
agreement against the recpiirements of such contract- 
ing buver as though this agreement were not in effect, 
and shall not buy unduly of the high grades in order to 
defeat the purpose of this agreement or concentrate its 
purchases in anv geographical region." 

An analvsis of the prices and quality of i)urchases 
is now being made by the Tobacco Section to ascertain, 
the manner in whichthe i)urchases have been made un- 
der the marketing agreement. A i)reliminary study of 
the situation, Mr. Hutson said, reveals that if the con- 
tracting buvers are making their i)urchases under the 
terms of the marketing agreement, other buyers in the 
market not signatories to the agreement are paying 
prices materially below those being paid l)y the con- 
tracting buyers. 

The signatories to the marketing agreement have 
been asked" to provide data with respect to their pur- 
chases and prices. 

Under the terms of the marketing agreeinent it the 
average price paid by any contracting buyer is less than 
the agreed price, such buyer is required to pay to the 
Secretary of Agriculture ''for each pound of Burley 
tobacco so purchased by it the difference between the 
average price so paid by it for all purchases and the 
average price so required to be paid by such contract- 
ing buyer.*' 




A. A. A. PRODUCTION CAMPAIGNS 

KOGRAMS of the Agricultural Adjustment 
Administration to bring 1934 production of 
basic agricultural commodities more nearly 
into line with elTective demand are well under 
way, a review of the status of these programs indi- 
cated. Producers of cotton and tobacco are signing 
agreements to reduce 1934 production. Wheat grow- 
ers and producers of cigar type tobacco already have 
signed such agreements and in return for making the 
stipulated reductions, they are receiving adjustment 
payments. 

Sign-up campaigns for bringing 1934 production 
more into line with consumption requirements are 
under way for five kinds of tobacco. These are flue- 
cured, Burley, fire-cured, dark air-cured, and Mary- 
land. A program for cigar-leaf tobacco was inaug- 
urated in 1933 and will be continued in 1934. 

Preliminary reports from the flue-cured tobacco 
region indicate that approximately 90 per cent, of the 
growers already have signed agreements to reduce 
their 1934 production. The sign-up campaign w^ill 
continue for a time in order that every grower may 
have an opportunity to sign agreements. Flue-cured 
tobacco is grown in North Carolina, South Carolina, 
Virginia, Georgia, and Florida. Growers who take 
part in the program agree to reduce 1934 production 
by 30 per cent, of their base. Rental and benefit pay- 
ments to these growers wdll approximate $17,000,000. 
The Burley tobacco sign-up campaign is about 60 
per cent, completed. Reports indicate that growers 
are signing agreements at a satisfactory rate. Growl- 
ers pledge to reduce their 1934 production by 33 1-3 
per cent, or 50 per cent, of their base. The Burley 
program is being conducted in Kentucky, Tennessee, 

10 



North Carolina, Virginia, West Virginia, Ohio, and 
Indiana. Rental and benefit payments to those grow- 
ers who participate will approximate $15,000,000. 

The fire-cured tobacco sign-up campaign now under 
w^ay in Kentucky, Tennessee, and Virginia, is about 60 
per cent, completed. Growers are signing agreements 
to reduce 1934 production by 25 i)er cent, of theij base. 
Particii)ating growers are expected to receive $1,700,000 
in rental and benefit ])ayments. 

Dark air-cured tobacco growers in Virginia, Ten- 
nessee, Kentucky, and Indiana, are signing agreements 
to reduce their 1934 ])roduction by 30 per cent, of their 
base. Rental and benefit payments to co-operating 
growers will approximate $715,000. The sign-up cam- 
paign is a little less than half way through on account 
of starting later than the other major tobacco sign-up 

drives. 

An adjustment program for producers of Mary- 
land type of tobacco in Maryland has been announced 
and the sign-up campaign is just getting under way. 
The program seeks to reduce production chiefly of the 
lower grades. Rental and adjustment payments to 
participating growers w ill approximate $140,000. 

Payments to growers wiio take part in tobacco ad- 
justment programs so far have been made only to cigar- 
leaf tobacco producers. Growers of the other kinds of 
tobaccos for which programs are being put into elTect 
will receive their payments in the near future as stipu- 
lated under the terms of their agreements. 

Up to January 23, payments to co-operating cigar- 
leaf tobacco growers totaled $1,519,273. The payments 
bv States were as follows : Connecticut, $183,384 ; Flor- 
ida, $63,106; Georgia, $21,390; Illinois, $267; Indiana, 
$1472; Massachusetts, $92,064; Minnesota, $12,011; 
New Hampshire, $2288; New York, $23,223; Ohio, 
$280,898 ; Pennsylvania, $431,315 ; Vermont, $2420 ; and 
Wisconsin, $405,428. 



"HEALTHY NERVES" CAMEL THEME 

FFICE workers, salesmen, housewives, secre- 
taries, motorists — smokers from every walk 
in life—are brought face to face with cham- 
pions and personalities of the athletic world 
as they say ** double check" on the modern need for 
healthy nerves. That, in essence, is the dramatic 
theme' of the new Camel cigarette campaign just re- 
leased by the R. J. Reynolds Tobacco Company. Ad- 
vertisements will be dominating in space, and are 
scheduled to appear frequently in a nation-w^ide cam- 
paign so as to take full advantage of the responsive 
new^s paper audience. 

In a typical advertisement of the new series, Ed- 
die Woods, the Ail-Around Champion Cowboy from 
Idaho says: '*To have nerves that can take it, I smoke 
only Camels," and Mrs. Phyllis L. Potter, housewife 
of Montclair, New Jersey, asserts, ** Cowboys need 
healthy nerves, and, believe me, so do housewives." 
Mrs. Potter goes on to compliment Camels on their 
mildness. **I can smoke Camels freely without a hint 
of jumpy nerves," she says. 

As in previous educational work dealing with the 
** nerves" question, the makers of Camels continue to 
lay emphasis upon the costlier tobaccos used in Camels, 
stating prominently in every advertisement that 
Camels are made from finer, more expensive tobaccos 
than any other popular brand. That accounts for the 
mildness of Camels and the Camel slogan — **They 
never get on your nerves." 

The Tobacco World 





ALWAYS /^ Sine6t S'oSi 



THE HEIGHT OF GOOD TASTE 

nd in Giaarettes too — ^tute -ui &>er^^tAm^ 

'CO and Qi^XK the Gmter,Xeav€c 



February i, 1934 



it 



Cigars and Cigarettes Increase in December 




HE following comparative data of tax-paid 
products, indicated by the monthly sales of 
stamps, are issued by the Bureau. (Figures 
for December, 19:33, are su])ject to revision un- 



til published in the annual report): 



-December — 



Products 
Cigars (large) : 

Class A No. 

Class B No. 

Class C No. 

Class D No. 

Class E No. 



1933 

220,941,685 

4,222,020 

46,819,062 

4,163,726 

543,747 



1932 

189,934,980 

3,898,207 

55,465,964 

3,897,355 

939,479 



Total 276,690,240 254,135,985 



15,211,707 

264,046 

7,319,117,167 

3,160,691 

20,955,090 



Cigars (small) No. 12,261,507 

Cigarettes (large) ...No. 302,400 

Cigarettes (small) ...No. 7,799,623,723 

Snulf, nifd Lbs. 2,393,641 

Tobacco, mfd Lbs. 19,292,241 

Tax-paid products from Puerto Rico (not included 
in above statement) were as follows: 

— December — 

Products 
Cigars (large) : 

Class A No. 

Class B No. 

Class C No. 

Class D No. 



1933 

3,877,400 

106,500 

81,280 



. . • • • 



1932 

3,843,225 

15,000 

96,30C 

1,500 



Total 



4,065,180 3,956,025 



Cigars (small) No. 

Cigarettes (large) ...No. 
Cigarettes (small) ..No. 



30,000 
140,000 



300,000 

40,000 

320,340 



Tax-paid products from the Philippines (not in- 
cluded in above statement) were as follows: 

— December — 
Products 1933 1932 

Cigars (large) : 

Class A No. 

Class B No. 

Class C No. 

Class D No. 

Class E No. ... 300 



15,891,485 


10,983,280 


12,837 


47,873 


9,614 


25,508 


100 





Total . . . 



• • • 



15,914,036 11,056,961 



Cigarettes (large) . . .No. 
Cigarettes (small) ...No. 
Tobacco, mfd Lbs. 



200 
114,260 



1,104 

211,920 

24 



Revenue Collections for December 



Sources of revenue 1933 

Cigars $781,112.44 

Cigarettes 23,401,902.67 

Snuff 430,855.44 

Tobacco, chewing and 

smoking 3,472,660.04 

Cigarette papers and 

tubes 84,440.79 

Miscellaneous, r e 1 a t ing 

to tobacco 222.01 



li 



1932 
$756,648.71 

21,960,082.23 
568,924.35 

3,772,242.88 

72,337.99 

2,361.52 



Withdrawals for Past Decembers 



1920 
1921 
1922 
1923 
1924 
1925 



506,126,135 1926 

463,663,809 1927 

561,041,853 1928 

491,358,758 1929 

511,276,573 1930 

473,336,217 1931 



464,575,489 
393,006,532 
411,910,434 
410,862,907 
349,635,250 
304,531,411 



Processing Tax Returns 

Detail of collections from i)rocessing and related 
taxes i)roclaimed bv the Secretary of Agriculture 
under authoritv of the Agricultural Adjustment Act 
(Public No. 10-73d Congress), approved May 12, 1933: 

Total 
from July 1, 
Month of 1933 (Fiscal 

Commodity December, 1933 Year 1934) 

Tobacco, (tax etTective 
(October 1, 1933) : 
Processing taxes $2,742,672.18 $2,943,642.71 

Import compensating 

taxes 30,620.19 

Floor tax, other than 

retail dealers 72,866.83 

Floor tax, retail deal- 
ers 116,956.41 



59,962.79 

1,720,274.16 

222,994.13 



Total, tobacKJo $2,963,115.61 $4,946,873.79 




PIPE CODE APPROVED 

PPKOVAL of the Code of fair competition of 
the Smoking Pipe Manufacturing Industry, 
effective February 2, was given by Adminis- 
trator Hugh S. Johnson on January 24. A 
maximum week of forty hours is ])rovided, with full 
exemption for employees in a managerial or executive 
capacity who receive $35 or more i)er week, emergency 
repair crews, outside salesmen, and highly skilled 
workers when engaged in continuous processes. Office 
cmplovees are jiermitted a maximum of 42 M* hours ])er 
week;* and forty-eight hours per week is allowed for 
shipping and packing room employees, engineers and 

firemen. 

The minimum wage is set at 35 cents per hour, 
with a provision calling upon employers to increase 
the wages of those receiving more than the minimum. 

It is estimated that operation of the Code will give 
employment to an additional 475 persons. 



TOBACCO SALESMEN ELECT 

Elections at the annual convention of the National 
Board of Tobacco Salesmen's Associations, at the 
Hotel Edison, New York, January 13 and 14, resulted 
in the following being cliosen as oilicers for the ensuing 
year: Abe Brown (Newark branch), president; Elmer 
W. Bindley (Trenton branch), first vice-i)resident ; Joe 
Freeman (New York branch), second vice-president; 
Abe Blumberg (Baltimore branch), third vice-presi- 
dent; Harrv Sternberg (Newark branch), secretary, 
and Albert* Freeman (New York branch), treasurer. 
The 1935 convention will be held in Atlantic City, N. J. 

Th4 Tobacco World 



Calendar Year Withdrawals for Consumption 



Cigars : 

Class A — 

United States . . 
Puerto Rico . . . 
Philippine Is. . . 



Cal. Yr. 1933 



3,689,722,930 

56,142,945 

186,261,175 



Total 3,932,127,050 



+ 
+ 



Class B— 
United States . . 
Puerto Rico . . . 
Philippine Is. . . 

Total 



30,838,309 

3,135,750 

196,944 



+ 



— Decrease 
-{-Increase 
Quantity 



199,182,880 
13,853,790 
12,294,435 

197,623,525 



21,187,602 

2,944,750 

501,198 



Total All Classes- 
United States . . 4,344,752,333 
Puerto Rico ... 60,058,755 
Philippine Is. . . 186,696,617 



+ 



98,138,720 
13,037,280 
11,684,952 



Grand Total 4,591,507,705 — 99,491,048 



Little Cigars : 

United States 
Puerto Rico 
Philippine Is. 

Total ... 



208,448,960 
3,274,000 



211,722,960 



72,918,041 
1,276,000 



74,194,041 



34,171,003 — 18,744,050 



Class C— 

United States . 
Puerto Rico . . 
Philippine Is. . 



572,699,566 
779,060 
233,570 



Cigarettes : 

United States 
Puerto Rico 
Philippine Is. 



111,763,441,149 + 8,177,552,283 



3,415,600 
1,476,490 + 



687,440 
9,443 



266,231,368 

2,125,040 

71,250 



Total 111,768,333,239 + 8,176,874,286 



Total 573,712,196 — 268,427,658 



Class D— 
United States . . 
Puerto Rico . . . 
Philippine Is. . . 



46,123,267 — 10,012,118 
1,000 — 
2,176 — 



Large Cigarettes: 
United States . 
Puerto Rico . . 
Philippine Is. . 



2,869,885 

805,000 

8,137 



+ 



691,213 

252,000 

2,917 



3,200 
1,700 



Total 



3,683,022 — 



442,130 



Total 



46,126,443 — 10,017,018 



Class E— 
United States . . 
Puerto Rico . . . 
Philippine Is. . . 

Total 



5,368,261 -f 
* '2J52 — 



109,488 

• • • • • • • 

35,335 



SnutT (lbs.)— 

All U. S. ,,.... 

Tobacco Mfd. (lbs.)— 

United States . . 
Philippine Is. . . 



36,326,152 — 



85,852 



304,902,282 
169 



7,370,767 
372 



5,371,013 + 



74,153 



Total 304,902,451 — 7,371,139 



Review of Foreign Tobacco Markets 



Cuba— During the year 1933 (Cuba's exports of to- 
bacco and tobacco products were valued at $13,395,306, 
a slight increase compared with 1932, wlien they 
amounted to $12,926,270, states American Commercial 
Attache Albert F. Nufer, in a report to the Tobacco 
Division, Department of Commerce. In spite ot an 
increase in value, however, the volume of exports, with 
the exception of cigars, showed a sul)stantial deCiine. 
This decline, it is noted, was apparently more than off- 
set by the improved prices which i)revade(l tor Cuban 
leaf tobacco during the greater part of 1!K}3. 

Exports of tobacco and tobacco products during 
December, 1933, were vahi«'d at $945,726 as against 
$1,056,183 during the same month of 1932. Cigar ex- 
ports during the month dropped sharply compared with 
December last vear, due to the strike of Habana to- 
bacco workers, \vhich lasted ahnost the entire month 
and imralvzed work in most of the hirger cigar iac- 
tories. While this strike has ])een settled temporarily, 
the difficulties which caused it have not yet been defi- 
nitely adjusted, and there is a possibility of further 
labor troubles in the tobacco industry. , , . 

Sumatra— According to a report made by Ameri- 
can Vice Consul W. M. Chase and released by the To- 

February i, 1934 



bacco Division, Department of Commerce, twelve Su- 
matra tobacco auctions had been originally scheduled 
for 1933, nine in Amsterdam and three in Rotterdam. 
Onlv ten, however— eight in Amsterdam and two m 
Rotterdam— were actually held. 

The crop turned out to be a definitely mediocre one. 
The companies have not been able to show the full 
elTect of economies etfected in the production ot the 
1932 crop because of expenses incurred in repatriating 
both European and coolie labor. Finally, due both to 
the German Governmental decrees, etc., to encourage 
the use of German grown tobacco in cigar production, 
and to the decline of use of the cigar in the United 
States, it is quite possible that the crop is not yet small 
enou<di to be covered by present-day demands. Ihe 
smaller demand situation will, nevertheless, be met to 
a certain extent by the anticipated 10 per ^^"V,?^^ "^^^^ 
decrease in the size of the 1933 crop which will be mar- 
keted in The Netherlands next year. ^ 

During the entire season, buyers to^ AmpTican ac- 
count took onlv 8222 bales as compared with 18,83J 
during the preceding year. Such a decline m American 
purchases is calculated to have brought the Deli grow- 

(Continued on Page 17) 

r? 



News From Congress 




_ -AND 

Federal 



Departments 




OXSIDERATIOX by the House of Kepresenta- 
tives this month of the tax bill prepared by the 
Ways and Cleans Committee is expected to 
bring forth a demand for reduction of the to- 
bacco levies. A double-barreled attack will i)robably 
be directed at the present tobacco taxes, for the relief 
of the cigar branch of the industry and to permit manu- 
facturers of ten-cent cigarettes to compete more easily 
with the higher-priced brands. The cigarette situation 
was brought before the attention of the committee dur- 
ing its recent hearings. 

Two bills dealing with tobacco taxes have already 
been introduced in Congress, and will probably be made 
the basis of anv effort to secure relief. 

* 

Under a measure prepared by Representative 
Chapman (Dem.) of Kentucky, the rates on cigars 
would be $1.50 per lOlK) on cigars weighing not more 
than three pounds, $4 on cigars selling for not more 
than 5 cents each at retail, $6 when retailing at between 
5 and 8 cents, $9 when retailing at between 8 and 15 
cents, $12 when retailing at 15 to 20 cents, and $15 
when retailing at more than 20 cents. The rates on 
cigarettes would be $2 per 1000 when weighing not 
more than three pounds, and $4.80 when heavier. The 
rate on tobacco and snutT would be 12 cents per pound. 

In the Senate a bill has been introduced bv Senator 
Barkley (Dem.) of Kentucky, providing for rates of 
50 cents per thousand on small cigars, $1 on cigars sell- 
ing at not more than 5 cents, $2 when selling between 5 
and 8 cents, $5 when selling between 8 and 15 cents, 
$7.50 when selling between 15 and 20 cents, and $10 
when selling in excess of 20 cents. The rate on ciga- 
rettes would be $1.50 per 1000, with a tax of $5 on 
cigarettes weighing more than three pounds. The tax 
on tobacco and snuff would be reduced to 5 cents per 
pound. 

^^^^^K ab^X^B ^K^l^H 

Cj3 CJ3 Ctl 

ROPOSALS of President Roosevelt for a 
$2,000,000,000 stabilization fund for use in con- 
nection with the revaluation of the dollar are 
seen in Washington as offering an opportunity 
also for the indirect control by the Government of im- 
ports of tobacco and other commodities, where the con- 
dition of the domestic producers may demand it. 

It is pointed out that if a **superbank" is in effect 
thus established, the Government could exercise a con- 
trol over exchange and by delaying or refusing grants 
for foreign exchange, on the ground of public interest, 
could compel the greater use of domestic products. 

Exchange control measures adopted in foreign 
countries in recent years, it is said, have served mate- 
rially to reduce their imports. 

14 





From oup M^ashington Bureau 62ZAlbee Building 



No immediate wide advance in the level of prices 
is seen in the proposal to revalue the dollar at about 
()0 cents, it being pointed out that for several months 
the dollar has been heavily depreciated abroad without 
any drastic change having occurred in domestic prices. 



Ct3 Ct3 Ct3 

LTHOUGH salaries paid by the codified indus- 
tries to oflicials of their Code authorities are a 
matter of indifference to officials of the Na- 
tional Recovery Administration, the Govern- 
ment plans to set an example of low salaries by limiting 
the compensation of administration representatives on 
the Code boards to probably $10 per day for such time 
as they may actually be engaged, ])lus a maximum of $5 
per day for expenses. 

Announcement of the administration's policy with 
respect to Code authority remuneration followed the 
receipt of reports that a number of trades were consid- 
ering high salaries for authority executives, in one in- 
stance the amount being said to be in excess of $50,000 
a year. 

The question of salary, it was pointed out at the 
administration, is one for adjustment solelv bv the in- 
terested industries, so far as their mendjers of the Code 
authorities are concerned, but the Government will con- 
sider its representatives on the Code boards to bo 
actuated by a desire to aid in the recovery movement 
rather than bv motives of self-interest. 



^^^^^^ ^^^3^_ a^^^^^ 

Cj3 [t] Cj3 

ESTORATION of the two-cent rate of postage 
on first class mail for other than locjil delivery 
should await the improvement of business con- 
ditions to a point where the increase in the vol- 
ume of letters will offset the reduction in revenue that 
would ensue, it is urged by Postmaster General Farley 
in his annual report. 

Unless action is taken bv Congress to continue the 
three-cent rate the postage charge will automatically 
return to two cents on July 1 next. 

Defending his proposal for continuation of the 
present rate, the Postmaster General reported that it 
had resulted in an additional revenue of approximately 
$75,000,000 during the fiscal year ended June 30 last. 
As a result of the reduction of the local rate to two 
cents last July, however, the additional revenue this 
year is expected to be about $17,000,000 less. 

Th€ Tobacco World 





CIGARETTES' MAGAZINE INVESTMENTS 

IX :^rANUFACTURERS of tobacco products 
were included in the list of 150 leading na- 
tional magazine advertisers of 1933, as re- 
l)orted in National Advertising Records. The 
fiiyures cover the amount invested by these advertisers 
ill a list of seventy-nine national magazines— sixty- 
eight monthlies and eleven weeklies and semi-monthlies. 
It^dll be noted that all six of the tobacco advertisers 
are manufacturers of cigarettes, to which the greater 
part of the copy is devoted. 

The report is not intended as a guide to the adver- 
tising policies of the companies. An increase or de- 
crease in magazine exi)enditure over the previous year 
may mean merely a switch of a portion of a company's 
advertising approi)riation from one type medium to 

another. 

Following is the roster of tobacco companies, ar- 
ranged iu tlie order of their nuigazine expenditures : 



1933 



1932 

$1,681,475 

1,521,092 

522,600 

966,840 



Reynolds Tobacco Co $2,247,109 

American Tobacco Co 738,653 

Axton-Fisher Tobacco Co 489,832 

Liggett & ]\Iyers 444,715 

Brown & Williamson Tobacco 

Corp 280,310 

P. Lorillard Co 132,300 

The Re\Tiolds Tobacco Co. was one of twelve ad- 
vertisers investing more than a million dollars for 
magazine space in 1933. Each advertiser in the list of 
150 spent more than $1(K),000. 



280,373 
129,848 



Tobacco Prices Continue Low 

Burley tobacco sales on the East Tennessee mar- 
kets last week continued to average less than $12 per 
hundred pounds, although sales continued in heavy 

volume. 

Sales reported on Thursday were: Greeneville, 
488,994 pounds at $10.71 ; Morristown, 114,694 at $9.24; 
Johnson City, 320,044 pounds at $11.91; and Knoxville, 
218,182 pounds at $8.27. 

The Knoxville market has handled 3,827,630 
pounds this season for an average of $9.65. 

The Abingdon, Va., market has taken the lead in 
volume of sales in the Southern Appalachian Burley 
tobacco belt, the season *s total sales being 9,345,002 
pounds, bringing an average price of $9.98 per hun- 
dred pounds. 

United Stores Dividend 

Directors of United Stores last week voted an ac- 
cumulation dividend of eighty-one and one-quarter 
cents on the no par $6 first preferred stock, payable 
March 15th to stockholders of record February 23d. 
Accumulations will amount to $14.25 a share effective 
with this distribution. 



New Cremo to Retail at Five Cents 

Announcement was made last week that the New 
Cremo cigar wall be priced at $37.50 wholesale less the 
usual discounts, and to retail at five cents each, and 
not three for ten cents as formerly. 

The brand is henceforth to be known as the **New 
Cremo*' and it will be materially improved in quality 
and increased in size. 

February i, igj4 



MURIEL 




CIGAR 



Full 
Size 




5^ 



Long 
Filler 



Exceptional cigar 
quality for a nickel 



Other sizes 

Lonitfeltows . 
Perfectoi . . 
ArUtocrats. . 



3 for 25< 

. . . 10^ 

2 for 25< 



Mfd. by P. LOIILLAKD CO., INC. 




TOBACCO TRADE ORGANIZATIONS 

TOBACCO MERCHANTS ASSOCIATION 
OF UNITED STATES 

JESSE A. BLOCH. Wheeling. W. Va. .....^ kilpHIideSt 

CHARLES J. EISENLOHR. Philadelphia. Pa v!^! pl!!la*at 

JULIUS LICHTENSTTEIN. New York, N. Y ;...; •^••'•liyjrrnmmitt?! 

WILLIAM BEST. New York. K Y . Chairman E«ec«t^y Committee 

MAJ. GEORGE W. HILL. New York. N. Y v r^P^H dent 

GEORGE H. HUMMELL. New York. N. Y v "-K^I 3"! 

H. H. SHELTON. Washington. DC Vice- P^! dent 

WILLIAM T. REED. Richmond. Va. V cLK« dent 

HARVEY L. HIRST. Philadelphia. Pa TV^.m^r 

ASA LEMLEIN. New York. N. Y •• V' V wl^'.-in- n!™^ 

CHARLES DUSHKIND. New York. N. Y v9°"°!f' »°^.**"»«»°« D»r««to» 

Headquarters. 341 Madison Ave.. New York City 

ALLIED TOBACCO LEAGUE OF AMERICA 

W. D. SPALDING. Cincinnati. Ohio vUl'pI!!!^!^ 

CHAS. B. WITTROCK. Cincinnati. Ohio ^•"T^!i|t2 

GEO. S. ENGEL. Covington. Ky. ••:••••; sISSS 

WM. S. GOLDENBURG. Cincinnati. Ohio aecrewry 

ASSOQATED CIGAR MFRS. AND LEAF TOBACCO DEALERS 

JOHN H. DUYS. New York City ; wjIllviwS^IIdlnl 

klLTON RANCK. Lancatter. Pa "F'^J V«e-Pre. den. 

D. EMIL KLEIN. New York City ^<SlrJ.^Tr«.u^2 

LEE SAMUELS. New York City Secretary-Treaiurer 

NATIONAL BOARD OF TOBACCO SALESMEN'S 

ASSOCIATIONS 

TACK A. MARTIN. Newark. N. J i*' •/Vr"'E!**-3!°! 

ALBERT FREEMAN. New York. N. Y -First Vice-President 

IRVEN M. MOSS. Trenton. N. J Second Vice-President 

ABE BROWN. 180 Grumman Ave., Newark. N. J Secretary -Treasurer 

NEW YORK CIGAR MANUFACTURERS' BOARD OF 

TRADE 

ASA LEMLEIN v' •■?*"!2!°! 

SAMUEL WASSERMAN Vice-President 

THE NATIONAL ASSOCIATIONS OF TOBACCO 

DISTRIBUTORS 

C. A. JUST. St. LoaU. Mo Ar-'irW President 

MAX TACOBOWTTZ. 84 Montgomery St., Jersey City, N. J ......Secretary 

E. ASBURY DAVIS. Baltimore. Md ^1^**^'^"*°"* 

E W. HARRIS. Indianapolis. Ind Y,\^^'V^.j 

JONATHAN VIPOND. Scranton, Pa Vice-President 

GEO. B. SCRAMBUNG, Qeveland, Ohio Treasurer 



MIA. 





Grabosky Bros. Take Larger Quarters 

RABOSKY BROS., IXC, manufacturers of the 
Royalist brand, have leased the building; at 11- 
15 North Second Street and will move their 
manufacturing operations to that location 
about March 1st. 

The success of the Royalist brand during the com- 
paratively short time it lias been marketed has been 
such that the capacity of their present building, 21 
North Second Street, is no longer adequate to take care 
of the steadily increasing demand for their product. 

The new* building contains live stories and base- 
ment, each 64 by 108, and will provide a capacity of 
150,000 ciirars per day, and is so constructed as to pro- 
vide an abundance of* daylight throughout the building. 
AVith the recent opening of now territories in New 
York and other sections of the country, the present fac- 
torv building has been pushed beyond its capacity. 

' N. E. Becker has recently been added to the selling 
force and is doing a successful promotion job in New- 
ark and northern New Jersey territory. 



Tobacco Dealers of Philadelphia Meet 

At a meeting of representative tobacco retailers 
of this city held on Tuesday, January 23d, it was de- 
cided bv those present to organize an association to 
be known as the Retail Tobacco Dealers of Philadel- 
phia, Inc., with the stated pur])ose of becoming affili- 
ated witli the Retail Tobacco Dealers of America, Inc., 
and **a desire to spread harmony throughout the in- 
dustry and a more thorough consideration of those 
who make tobacco products their means of a liveli- 
hood. '^ 

Temporary officers chosen were Harry A. Tint, 
president; Harold Dean, vice-president; George Jones 
(Yahn & McDonnell), treasurer, and Sam Greenwald, 
secretary-. 



Benjamin Lumley, representative of the Garcia y 
Vega factory in Tampa, returned last week from a visit 
to New York City, where he met with officials of his 
company and discussed plans for 1934. Ben returned 
quite elated over the praise he received as to the volume 
of business he had turned in from his territory during 
the year 1933 for the Garcia y Vega factory. Garcia y 
Vegas are distributed here through John Wagner & 
Sons. 

t6 



Trade Notes 



Joe Banker and Barton Lemlein, of M. Saks & Co., 
New Y^ork, were in town this week visiting John AVag- 
ner & Sons, local distributors. 



John L. IMcGuerty, of Romeo y JuTieta fame, left 
on Wednesday for Tami)a, where he will spend some 
time before leaving for Havana by plane to visit fac- 
tory headquarters. 

B. C. Jessa, representing the Heine's Tobacco Co., 
Massillon, Ohio, was in town last week promoting the 
distribution and sale of Heine's Blend, a high-grade 
smoking mixture which is enjoying a good demand here, 
and distributed bv Yahn & McDonnell. 



Otto Eisenlohr & Bros, have moved their office and 
warehouse headquarters from 1018 North Broad Street, 
and are now located at 1711 Vine Street, where the 
new location affords better storage facilities and is 
more accessible for the central business district. 



The Sun Ray Drug Co., formerly located at 934 
Market Street, has moved into larger quarters at 940 
Market Street, where the larger window space will 
permit of a more satisfactory display of their line of 
tobacco products and druggists' sundries. 



Paul Brogan, vice-president of Yahn & McDonnell, 
is in Florida, where he is combining business with 
health measures. Paul is recuperating from a serious 
cold which confined him to his home for a while a short 
time ago. He expects to remain in Florida for several 
weeks. 



Harry A. Tint, proprietor of the cigar stand at 
1420 Chestnut Street, left on Thursday on his annual 
visit to Tampa, accompanied by Mrs. Tint. The trip 
will be made by auto, and while in the Florida city 
enjoying the sunshine and balmy breezes, Harry will 
visit the manufacturers of those high-grade Tampa 
cigars wiiicli have made his stand famous to the 
smokers of Philadelphia. 

The Tobacco World 




FOREIGN TOBACCO MARKETS 

{Continued from Page 13) 

ors at least 5,000,000 florins less, to say nothing of the 
lower prices paid this year for American account. 

Not since 1890 has a harvest brought such small 
receipts as that of 1932. It is understood that the unit 
cost price of the 1933 crop, to be marketed next year, 
has been materiallv reduced. On the other hand, grow- 
ers are faced with*(a) the declining consumption m the 
United States of expensive cigars, which alone can at- 
ford Sumatra wrappers, (b) the attempts of the Ger- 
man Government to force the use of German grown 
tobacco in the cigars manufactured m that country, 
although it is expected that this will affect binder mate- 
rial rather than Sumatra wrapper, and (c) the raising 
of the excise tax on cigars manufactured in this coun- 
trv which threatened to reduce materially the use ot 
finJ qualitv tobaccos and, consequently, the earning ca- 
pacitv of the plantation companies. 
^ j^vA— During the period of Javanese early his- 
torv, when the East India Company held dominance 
there is no record of tobacco being exported trom that 
countrv, the European markets having been supplied 
from other sources, states American Consul Joel C. 
Hudson, in a review of the Java tobacco industry, re- 
leased in part bv the Tobacco Division, Department of 
(Commerce. Although large ciuantities were produced 
bv the natives at Kedoe, Bagelen, Banjoemas, Malang, 
the Preanger Regencies, and elsewhere, it was manu- 
factured into native kerf tobacco and consumed m 
Java. The so-called culture laws ended many ot the 
restrictions on tol)acco growing and a trade with 
Europe began. At first only native tobacco was ex- 
ported, but soon it was found unsuitabk^ for he trade 
and interested parties began to search tor better quali- 
ties Eventuallv, about 1830, someone obtained about 
a pound of tobacco seed from Manila, despite the severe 
restrictions there, and this is said to have been the be- 
ginning of an improved tobacco cultivation in Java. 

One way to gauge the importance ot tobacco to 
Java today is to determine its importance as an export 
crop in comparison with others. Statistics issued m 
Vr.n indicated that the value of exports ot Java to- 
bacco ranked forth, being exceeded by exports of sugar 
and sugar cane products, tea, and rubber. It is believed 
that the relative positions would be the same today as 
tliev also prevailed during the year 1932. Tobacco dif- 
fers from the others, however, in that the domestic 
consumption is greater in proportion. Considerable 
quantities of the domestic product, as well as appreci- 
able imports, arc consumed locally. The mferior native 

February J, 1934 



tobacco (that grown on the estates is of higher quality) 
finds an outlet not only in Java but also m certain Euro- 
pean markets where a cheap tobacco is desired, io- 
bacco is an important commodity in the commerce wi h 
the United States, and since the export trade is largely 
through Holland, American buyers secure Java tobacco 
at sales there after it has been shipped trom Java. 



WILLIAM H. O'KEEFE DEAD 

William H. O'Keefe, 4827 Roosevelt Boulevard, 
well-known cigar retailer, who has conducted a stand at 
28 South Fifth Street for more than thirty-five years, 
passed awav suddenly on Friday, January I2th, while 
on the Frailkford Elevated train en route t^o his^ home. 

Mr O'Keefe 's store was located m the heart ot tiie 
old financial district of the city and he had a host ot 
friends and customers among the bankers and brokers 

^"^ ^^Fuieral services were held at the funeral home of 
Andrew Ebert's Sons, 258 South fourth Street and 
solemn requiem mass was celebrated m St. Martin s 
Church on Thursday, January 18, with interment m 
Kew Cathedral Cemetery. He was seventy-five years 

* He is survived by one brother in Atlantic City, 
two sisters in Los Angeles, and a sister m Gloucester. 



Edward A. Hoffmeister Passes 

Edward A. Hoffmeister, well known retired cigar 
manufacturer and retailer, passed away p.n J>londay, 
Suarv 15th, at his home, 803 South Sixtieth Street, 
following a six-months' illness. 

Mr Hoffmeister had been in the cigar manutac- 
turing and retailing business for twenty-five years, and 
was well known in Masonic circles 

He was a member of Conrad B. Day Lodge, F. & 
A. M.; St. John's R. A. Chaptei- No. 232; bt JoliY 
Commandery, No. 4 K. T. and Lu Lu Temple A A 
N M. S.; also Philadelphia Lodge No. o4, Lo>al 
Order of Moose. He was sixty-nine years old. 

Funeral services were held from his late residence 
on Thursday, January 18th, with interment m West 
Laurel Hill Cemetery. . 

He is survived by his widow, Mrs. Katharina Hoff- 
meister. 

Nat Friedland, New York representative, has been 
elected vice-president of the R. Steinecke Co. 



Established 1886 



"BEST OF THE BEST 



99 




""•'"'■"■' "' A. SANTAELLA & CO. 

Office, 1181 Broadway, New York City 

FACTORIES: Tampa and Keg West, Florida 



OUR OIGH-GRADE NON-EVAPORATING 

CIGAR FLAVORS ^ u u - 

Make tobacco meUow and smooth In character 
and Impart a most palatable flavor 

FLAVORS FOR SMOKING «nd CHEWING TOBACCO 

Write for List of Flavors for Special Brands 
BKTUN. ABOMATIZEB. BOX FLAVORS. PASTE SWEETENERS 

FRIES 8k BRO., 92 Reade Street. New York 



mviwuiiiimititi^ f>^ii>^^^ 



Classified Column 



The rate for this column it three cents (3c.) a word, with 
a minimum charge of seventy-five cents (75c ) payablt 
strictly in advance. 



B fe^ffif:{s?y, i ,^, : g 'tay;ft^ 




POSITION WANTED 



CIGAR SALESMAN COVERING EASTERN PENNSYLVA- 
NIA and Local Territory desires connection. Large following. 
Address Box No. 580, "The Tobacco World." 



Newspaper and magazine advertising executive, thoroughly 
experienced, formerly with local newspapers and agencies, and also 
advertising manager. Position with firm desiring an advertising man, 
salesman or assistant to manager. Knows marketing, merchandis- 
ing and distribution. Salary not as important as opportunity to 
demonstrate actual worth and ability. References the highest. 
Address, F. H. Riordan, 5915 Webster Street, Philadelphia, Pa. 



CIGAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON 
Automatic Machines, wants a position. Also instructs beginners. 
Address Box No. 558, "The Tobacco World." 



FOR RENT 



OFFICE AND FLOORS FOR CIGAR MANUFACTURING OR 
STORAGE — No parking restrictions; good location; low rent; 
freight elevator and loading platform. Will divide. Metals Coating 
Company of America, 495 North Third Street, Philadelphia. 



HAVANA CIGARS 



BEER WITHOUT CIGARS, IS LIKE KISSING WITHOUT 
LOVE — Adopt as your slogan, "Kiss your beer, but love your ci- 
gars." Specially those Havana blended, "Good to the last Puff," 
manufactured by A. Ramirez & Co., Post Office Box 1168, Tampa, 
Fli. Write them for particulars today. 



Tobacco Merchants' Association 
Registration Bureau, JtV'ioS'cl^ 

Schedule of Rates for Trade-Mark Services 
Effective April 1, 1916. 

Registration, (see Note A), $5.00 

Search, (see Note B), 1.00 

Transfer, 2.00 

Duplicate Certificate, 2.00 

Note A— An allowance of $2 will be made to members of the Tobacco Mer> 
chants' Association on each registration. 

Note B— If a report on a search of a title necessitates the reporting of more 
than ten (10) titles, bat less than twenty-one (21), an additional charge of One 
Dollar ($1.00) will be made. If it necessitates the reporting of more than twenty 
(20) titles, but less than thirty-one (31), an additional charge of Two Dollars 
($2.00) will be made and so an additional charge of One Dollar ($1.00) will be 
made for every ten (10) additional titles necessarily reported. 



REGISTRATIONS 

SWANKY: — 46,286. For cigars, cigarettes and tobacco. January 
9, 1934. E. Popper & Co., Inc., New York, N. Y. 

KENT-SHIRE: — 46,287. For all tobacco products. January 13, 
1934. George Schlegel, Inc., New York, N. Y. 



TRANSFERS 

KENTSHIRE:-^6,022 (Tobacco Merchants' Association). For all 
tobacco products. Registered April 9, 1932, by George Schlegel, 
Inc., New York, N. Y. Transferred to AUes & Fisher, Inc., Bos- 
ton, Mass., January 20, 1934. 

KENT-SHIRE:— -46,287 (Tobacco Merchants' Association). For 
all tobacco products. Registered January 13, 1934, by George 
Schlegel, Inc., New York, N. Y. Transferred to Alles & Fisher, 
Inc., Boston, Mass., January 20, 1934. 

VAN REX: — 37,692 (United Registration Bureau). For cigars, ciga- 
rettes, cheroots and tobacco. Registered August 26, 1912, by Amer- 
ican Litho. Co., New York, N. Y. Transferred by Consolidated 
Litho. Corp., successors to Cigar Label Department of the original 
registrants, to Deisel-Wemmer-Gilbert Corp., Detroit, Mich., Jan- 
uary 23, 1934. 

FLIGHT: — (United States Tobacco Journal). For cigars. Regis- 
tered March 26, 1886, by Thoroughgood & Co., Jonesville, Fla., and 
Janesville, Wis. Transferred by C. B. Henschel Mfg. Co., Milwau- 
kee, Wis., successors to the original registrants, to George Schlegel, 
Inc., New York, N. Y., January 27, 1934. 



CORRECTED PUBLICATION 
Renewal Registration 

EL PURANO: — 46,82L For cigars, cigarettes and tobacco. Regis- 
tered by Webster-Eisenlohr, Inc., New York, N. Y., December 27, 
1933. (Originally registered February 9, 1900, by Otto Eisenlohr 
& Bros., New York, N. Y., predecessors to Webster-Eisenlohr, 
Inc.) 



"What a welcome visitor 
The Tobacco World 
must be to wholesalers and 
retailers ! 

*'If they are only half as 
interested in reading it as 
we ourselves are, we're glad 
our ad is in it regularly" — 

says an advertiser. 






ii^. 



i'i 



FEBRUARV 15, 1934 




■— ■>■■■■■ i W 




-^ 



i 



COMMON SENSE 



The importance of attractive and dependable containers for 
fine cigars is recognized by the progressive cigar manufacturer. 

Generally the brands that are increasing their goodwill in this 
present analytical market are packed in the new improved 
AUTOKRAFT cigar boxes. 

Cigar Manufacturers who have not investigated the value of 
the merits and economies of the splendid and inviting package 
may obtain complete details promptly by addressing the 
AUTOKRAFT BOX CORPORATION. 



= 



A 



^\ 



^ 



^ 



Phila., Pa, 
Hanover, Pa. 
Cincinnati, Ohio 




York Pa 

AUTOKRAFT BOX CORPORATION Chicago, lii. 

Lima Ohio Detroit, Mich. 

A NatioivWidc Service Wheeling, W. Va. 




PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA.. PA. 



After all 
nothing satisfies like^ 
a good cigar 



WOODEN BOXES 

Are the Only Natural Humidor for Cigars. 



Pack your cigars in wooden boxes and preserve 
their delicate aroma, mellowness and flavor 
right up to the time they are passed over the 
counter to the customer. 

Discriminating cigar smokers prefer to select 
their favorite brand from a wooden box— and it's 
good business to cater to the dealer and con- 
sumer by packing your cigars in wooden boxes. 



WHEN BUYING CIGARS 

Remember thi» Refardlew of Prict 

THE BEST CIGARS 

AMM f*aaB K* 

WOODEN BOXES 



THE TOBACCO WORLD 



Vol. 54 



FEBRUARY 15. 1934 



No. 4 




The TOBACCO WORLD has signed the President's agreement and 
is operating under NRA Code, gladly and wholeheartedly co-operattng to 
the fullest extent in the Administrations effort to promote industrial re- 
covery. 



]IE\VING the matter entirely from the outside, 
we are of the opinion tliat the 1933 statement 
of Bayiik Cigars, Inc., is well worth the seri- 
ous studv of everyone in the cigar busmess. 
It is documentary evidence of the truth that there is 
still gold in them thar hills of Product, Price, Mer- 
chandising, Advertising. For what there may be in it 
for the rest of us, let's take a look at the record. 
I^Iaybe even a quick review, still from the outside, will 
i)rompt some of the rest of us to follow the Scriptural 
injunction : Go thou and do likewise. Without a doubt, 
such a course would prove a very salutary move for 
the revival of the cigar business generally. ^ 

Bayuk Phillies was a good cigar in 1932. Evi- 
dently the buyers of ten-cent smokes thought so, if we 
are to judge' from comparative sales. Yet the com- 
panv finished up the year with a loss of more than a 
milfion and a quarter dollars. To be sure, much ot 
this heavy loss was accounted for by a substantial in- 
ventory write-off, but more of it was occasioned by a 
very perceptible reduction in the market for ten-cent 
cigars. Bayuk officials decided to widen their market 
by reducing the price of Phillies. 

Please do not misunderstand us. We are not sug- 
gesting that others follow that example now. W^e are 
decidedly of the opinion that if the Bayuk people had 
stopped witli the reduction, if they had sat back and 
waited for the new price to increase their business 
automaticallv, there would have been an entirely dif- 
ferent story' told in their 1933 statement. 





F ALL this seems to you like making a great 
pother about something that everybody knows, 
if it sounds like a glorification of the obvious, 
that's all right by us. For that is exactly 
what it is. Everybody knows that there is a fortune 
for anyone who puts out a good product, who prices 
it right, who promotes its sales conscientiously and in- 
tensively, and who puts behind it the right kind of 
advertising. But, in the cigar business, Bayuk was 
one of the few manufacturers to put that knowledge 

to work. 

It is a statement of the obvious to say that, after 
a man has made a good thing and put an attractive 
price on it, he can count on selling it in huge volume 
if he will see to it that it is prominently on display 
in the places where it should be on sale, and then skil- 
fully use advertising to send crowds of customers in 

to buy it. . , . 

We are of the opinion that the 1934 cigar busi- 
ness will show a vast improvement if everybody in it 
will do what everybody knows it will be a profitable 
thing to do. 

Ct3 [t3 Ct3 

HP:RE is no intention to give the impression 
that Bayuk had any monopoly on common- 
sense business operations during the tough 
year of 1933. If you could examine the pro- 
grams of the other successful cigar manufacturing 
companies, vou would find a similar lack of magic, a 
similar absence of secret hocus-pocus, a simdar sup- 
port of product and price with good merchandising 
and advertising. The reports of the General Cigar Co. 
and the Consolidated Cigar Corporation, for ms^tance, 
are oIIht exemplifications of the power of the obvious 
in th(' accumulation of profits. The substantial earn- 
in^'-s in the last quarter of 1933, and the sales and earn- 
in^'s during the first month of the current year, offer 
luHher evidence of the simple truth that busmess is 
there if vou make what the public wants, if you let 
them know that you make it, and then make it easy 
for them to buy it. 




CjJ Cj3 Cj3 

O, when we intimate that it might be well for 
others to **go and do likewise,*' we are thinking 
of what followed the price reduction, or per- 
haps we should say, accompanied it. They did 
not stop at Product and Price. On the contrary, they 
inaugurated the most intensive program of Merchan- 
dising and Advertising in the long history of the com- 
pany They left nothing to luck and the problematical 
procession of events. They went after the business 
what we mean, and they began to get it m the first 
month of the new program. , , ,^ .^ , 

When you think over the fact that the unit volume 
of sales during 1933 was the highest in the history 
of the company, exceeding the peak ye^ars 1927 and 
1928— those two fine years in the cigar business— you 
will not havr' the complete picture unless you give 
credit to the company's detailed promotion campaign 
and its well-conceived advertising, along with the pub- 
lic acceptance of the product and the new price geared 
down to the wide market. ^^ 

The TOBACCO WORLD (established 1881) i. published by Tobacco W^^r^^^^^^^^^^ 
Gerald B.Hankins. Secretary. Office. 236 Chestnut Street Philadelph^^^^^^ Entered as second-class mail matter, 

able onlv to those engaged n the tobacco industry, $2.00 a year, ZO ""**-V«rrV, ^ 1879 
beJcSJb^ 22. 1 W at the Post Office. PhiUdelphla. Pa, under the Act of March 3, 1879. 




Ct3 Cj) Cj3 

VEN such a hasty and superficial look as we 
are making at the Bayuk operations in 1933 
must embrace the fine work which the company 
did for the industry as a whole. In addition to 
the regular promotion plans to stimulate the buying 
of cigars for Christmas, Labor Day, Father's Day and 
other holidays, Bayuk spent a substantial slice ot its 
advertising 'appropriation on its famous **How Long 
Since You Smoked a Cigar'' and other advertisements 
calculated to prompt men to smoke some cigar, not 
necessarily a Bayuk Phillies. 



Burley Sign-Up to Close February 17 



Cigar Code Approval After March 8th? 



^«jlTH 83 per cent, of tlio Biuley tobacco acreage 
\fm i^"^^*^^'^' contracts for reduction in IIKU, the 
Agricultural Adjustment Administration to- 
day announced tliat the sign-up campaign now 
under way will be closed on Fel)ruary 17th. 

Of those growers who have signed Burley tobacco 
reduction contracts, a))proximately halt* of them have 
elected to reduce production .")() per cent, and the re- 
mainder of those who signed are to reduce production 
by 33 1 3 per cent. Officials ot* tobacco section of the 
Agricultural Adjustment Administration stated that 
during the past two weeks hundreds of growers who 
signed contracts earlier to reduce their 1934 produc- 
tion one-third, after more careful consideration, have 
decided to reduce their production by one-half in order 
to get the larger acreage and adjustment pa^^nents. 

In connnenting on \\w progress of the 13urley 
sign-up campaign, J. B. llutson, chief of the tobacco 
section, said, ''It now appears that at least 95 per cent, 
of the growers will particii)ate in the i)rogram. If this 
number participate, and one-half of them elect the 50 
per cent, reduction option and one-half elect the 33 1/3 



l)er cent, option, the initial production allotment under 
contract would be approximately 1]20,(K)0,()00 pounds. 
With 5 per cent, of the growers unsigned, the i>roduc- 
tion outside might be as much as 25,()()0,()0() pounds and 
would result in a total cro]) in 1934 below *J5( ),()()( ),()()(> 
l)ounds. Such a cro]^ would l)e the snudlest since 1927. 

According to re])orts receivetl Wednesday by the 
tobacco section from the J^urley tobacco region, the i^er- 
centage sign-uj) in the various States is as follows: 
Kentucky, SO i)er cent.; Tennessee, 90 per cent.; \n- 
diana, 75 per cent.; Virginia, 92 per cent.; West Vir- 
ginia, 60 i)er cent. 

In those sections ol* llic Burley Belt in which 
intense eiforts have been made to get the contracts 
l)efore all growers, practically all of them have signed. 
There are, however, some connnunities in ])ractically 
everv State, and, in some cases, entire counties, in which 
little work has been dcnic. During the next two weeks, 
the ])artici])ating and non-participating growers will 
be listed by townshi])s in each county and the ]n(»gram 
wdl be exjllained to every grower who has not already 
signed a contract. 



New Opinion in Burley Agreement 




URLKY tol)acco growers whose inoduction in 
both 1932 and 1933 was abnormally low be- 
cause of drought, flood, hail or stonn damage, 
have been granted an additional option in the 
Burley tobacco adjustment agreement which will make 
it pos'sible for these growers to take imrt in the pro- 
duction adjustment program, according to an an- 
nouncement from the tol)acco section of the Agricul- 
tural Adjustment Administration. ^ 

Growers in several sections were linding it mi- 
possible to take part in the Burley program because 
of the abnormallv small base which they could obtain, 
because of low producti(»n in 1932 and 1933. The pur- 
pose of the Administration in otTering the additional 
oi)tion is to enable these growers to obtain a base more 
nearly representative of their farms, it was said. 

the new option is offered only to growers whose 
crops were affected bv weather conditions and i)ro- 
vides a base which is 70 ])er cent, of the 1931 acreage 
and CO per cent, of the 1931 jjroduction. This option 
mav be used onlv if the ])roducer is able to furnish 



evidence satisfactory to the county control committee 
that tiie abnormally h)W i)roduction in 19.")2 and 1933 
was actually due to drought, Hood, hail or storm 
damage. 

A producer ])erniitted to use this new option will 
be required to submit to his local committee a signed 
statement setting forth for both 1932 and 1933 the 
cause or causes of the low production and the extent 
to which ])roduction was reduced because of each such 
cause. This statement must be approved by the county 
control committee and will be iiled in the state pro- 
duction control office. 

The Burley tobacco sign-uj) campaign closes Feb- 
ruary 17th. CJroweis will be given until that date to 
till out contracts and to file their rnpiests for permis- 
sion to use the new option. It was ])ointed out l)y offi- 
elals that if a grower has already liOed out a contract 
in which one of the old options \va> used, it will not be 
necessary for him to fill out a new contract t«> use the 
new option. 



Listeners to Choose U. S. Tobacco Program 




HK HADIO audiencr' now ha^ an opiiortunily 
to select the kind <»f entertainment it wants to 
hear over an XB(^-WKAF network on Satur- 
dav evenings at 0:4:) P. M., P^astern Standard 
Time. Sponsors of this i)eri<)d on the air are going to 
present several totally dilTerent types .»!' ]»rourams dur- 
ing the next few weeks, and will adopt a- permanent 
the one which meets with the -reat<'st response from 

listeners. 

^'One Xiizht Stand," a variety show featuring Pick 
Padgett and Pat Malone, well-known radio roniedians, 
and "other <-iitertainers, was tlie first of the half hour 
broadcasts heard on Saturday, January 27th. 



SubscMpient Saturday niiiht- are ln*iiming other 
])erformers and other types of programs to listeners 
from the XBC Radio City studios under the siumson- 
ship n\' the Pnited Stati's Toba<-eo Company, sponsors 
of *'The Half Hour for Men," which formerly was 
heard at this time. 

Several dilTerent types of show^ will be "audi- 
tioned" for the listening pulili*- Ix'fore a liual selection 
is made. Tiie decision to invite the audience to sit in 
on the trial programs wa> reached after the sponsors 
of the si'rie- had listened to nufiieroiis private auditions 
and eliminated all but the mo^t i»r(»mising (►lYerings. 

Th4 Tobacco World 




X \M1^\V of tile gigantic conference called by 
(Jenerai Hugh S. Johnson, Administrator of 
the Xational Industrial Recovery Act, to be 
held in Washington, March 5111 to 8th inclu- 
sive, and attended by representatives of all the Code 
Autliorities, Code !*ractice Committees or Trade As- 
sociations in tlie country, we are inclined to believe 
that there is little hojic of approval of the Cigar Man- 
ufacturers' Code, or the Jobl)ers' and Retailers' Code 
until after the completion of this conference. 

The conference is called to determine practical 
measures to meet ]>i-oblems which have arisen in actual 
code oi)eration, and tliei-e have been many instances 
where it has been found that Codes have been ap- 
ju'oved, after what was thought to be most thorough 
analysis and investigation, and after the Codes were 
])Ut in operation it has i)een found that many of them 
contained impracticable regulations which have caused 
no little confusion, and this conference has been called 
in the hope that information will be obtained which 
will elimin{it<* similar mistakes in future Code ap- 
])rovals and also devise ways and means of eliminat- 
ing such objectionable features from the Codes al- 
ready ai)i>roved an<l in o])eration. 

A total of 27S Codes covering ai)proximately 90 
per cent, of all industry and trade have been approved 
to date and another X)'.\, most of them for relatively 
small industi'ies, on which ])ublic hearings have been 
held, are in c(Miise of ])rei)aration for final approval. 
In his call for the conference, the opening ses- 
sions of which are to be held in Constitution Hall, Gen- 
eral Johnson outlined the major ])ur])oses to include 
*Mhe consitleiation in public sessions of the possibili- 
ties of increasing employment; ])rotection against de- 
structive comi)etition and against excessive ])rices and 
mono])olistic tendencies; the elimination of ine(|uali- 
ties and inconsistencies in Codes; the position of small 
enterprises; and the vast ])roblem of Code a(hninistra- 
tion and the organization of industry for self-govern- 
ment." 

In his invitations to the conference, (Jenerai John- 
son not only retpiested the su))mission before Febru- 
ary 20 of '*such (piestions, or suggestions, which in 
vour jialgment, may improve the judicy or procedure 
of the Xational Recovery Administration" but he also 
urg(»(l participants to come prepared to discuss details 
of the elTect of the Co<les on their [larticular indus- 
tries. 

Accurate information i> <lesire(l, the (Jenerai 
l)ointed out, concerning the etTects of Codes on opei'a- 
tions, incliKlinir emplovment, in each industrv; on gen- 
eral price tri'iids of pro<bicts in each industiy; and on 
unethical trade practice^^, .i^ well as the etTects of Code 
provisions, if any, restricting jiroduction through lim- 
itation of machine hours or ])lant facilities, and the 
effect of Codes on smaller concerns in each of the in- 
dustries. 

In addition, the invitation solicits suggestions t 
be j)resente<l during the j'onference for the modifica- 
tion, elimination or addition <>f specific Code ])i-ovi- 
sions; pro))osals to?" the elimination of overla])ping 
of Cod<»s and for the financing of industry Code ad- 
ministration. 

Il has be<*n stated definitelv receiitlv that (Jenerai 
Johnson is inclined toward the belief that it will be 

February j$, rgs4 



n 



necessary to further reduce the working hours per 
week to ])ossibly thirty-two hours to accomplish the 
re-eini)loynient of the many millions who are still on 
the relief rolls, or the CWA rolls, and that this should 
be done by working four days of eight hours each, 
rathei- than five days of six hours each, or six days of 
five hours each. 

However, if this i)rogram is ])roj)osed, there is the 
(luestion of weeklv and hourlv wage rates to be recon- 
sidered, and many feel that the various industries, 
particularly the small enteiiu'ises in these industries, 
can not stand, for very long, anotluM* increase in wage 
rates without some compensation in increased selling 
))rices, and (JeiK'ral Johnson, on the one hand seems 
to be committed to the tlieory that prices wust be kept 
down, at least temporarily, while President Roosevelt 
seems to be inclined toward the theory that an im- 
mediate and substantial increase in prices is the only 
road to the old time ])rosj)erity. 

Then, too, although ])rice fixing clauses seem to 
have slipped through <piietly in some of the approved 
Codes, there seems to be a definite trend among the 
"experts" in Washington to put 'Mhumbs down'' on 
this feature which so many feel is our only salvation 
against the unsciu]nilous ])rice-cutter, and, particu- 
larly in the tobacco industry, of using tobacco prod- 
ucts as *'loss leaders" to the very great detriment, if 
not elimination, of the small entei-i)rise, which it is 
the avowed ])urpose of the X'^ational Recovery Admin- 
istration to protect and preserve. 

All of these indications |»oint toward the defeat 
of the one great hojie of the retailer and jobber that 
when the Cigar ^fanufacturers' Code is approved, 
there would be an established retail and jobbing price 
** below which these products must not be sold'', and 
which, if so estal)lishe(l, would enable them to pay 
their employees the living wage which is the major 
(;bjective of the X'ational Recoverv Administration 
and also enable the *' small enterprises" to make a le- 
tiitimate j)rofit on their investment. 



W. L. FENTON'S SON KILLED 

The many friends of W. L. Fenton, representing 
the Little Cigar I)e])artment of the P. Lorillard Co. 
in the Philadel])hia territory, are sym])athizing with 
him over the sudden dejith (»f his son, Warren, on 
February l.'^th. The fourteen-year-old boy was struck 
by an automobile while coasting down steep Crystal 
Lake Avenue, near the Pennsylvania Railroad cross- 
ing in Westmont, X". J. The Fenton home is at Maple 
and lladdon Avenues, Westmont, X'^. J. 



U. S. TOBACCO COMPANY 

X'et ]>rofit of the United States Tobacco Company 
for the year ended December .''l totaled $3,396,482, 
e(jual {() $7.().'3 a common share. This conij)ares with 
$.1,r)34,!>4.'J, or $7.04 a common share in 1932. During 
1933 a profit of $47.'),0s;; was made on sale of the com- 
pany's treasury coinmon stock, which credited to the 
surplus account. 



/^li 



> 



News From Congress 



r^ 






[ I ltHl!:fl 



Emm 

mfit tnfy 



i:k^ 



^ 'AND 

FtbERAL 

Departments 



'S»ift4JL 







XPORT of a considerable volume of tobacco to 
Italy is expected to result from a deal just con- 
summated by the State Department with Italy, 
contemplatin«: the doubling of the latter 's orig- 
inal liquor quota in return for the purchase of Ameri- 
can tobacco in an amount and of a type and quality not 
disclosed. 

Negotiations for the transaction were surrounded 
by secrecy, due to the desire of the Italian government 
to obviate the possibility of the market price of tobacco 
being **run up'* on their buyers because of the agree- 
ment to take our product. On the other hand, the State 
Department is unwilling to give detailed publicity to 
the pact because of a wish to withhold from other na- 
tions seeking similar agreements knowledge on which 
to trade for an increased liquor (piota. 

The tobacco-liquor deal is one of a series being 
negotiated by the State Department with the repre- 
sentatives of other governments which are desirous of 
securing permission to ship to the American market 
now being opened up more of their native production of 
wines and liquor than was permitted under the quotas 
originally set by the administration. 

It had been brought to the attention of State and 
Agriculture Department negotiators that Italian pur- 
chases of tobacco in this country have been steadily de- 
creasing for some time past, due, it is said, to the fact 
that tobacco consumjition in Italy has been greatly cur- 
tailed because of the economic situation. 

Because of the circumstances surrounding the deal, 
it has been agreed between the Italian ambassador and 
representatives of the State and Agriculture Depart- 
ments that the Italian tobacco commitment shall be 
stated in skeleton form, the oral or gentlemen's agree- 
ment being far more important than that which has 
been reduced to writing. 



^^A^ ^^^^^ m^O^m 

Cj3 Cj3 Cp 



EVELOPMP^NT of an entirelv new method of 
applying Internal Revenue taxes to cigarettes, 
on the basis of price instead of weight, is ex- 
pected to be sought by members of Congress 
from the cigarette-manufacturing States when the tax 
bill now before the House of Representatives reaches 
the Senate. 

The present tax of $3 per 1000 on cigarettes weigh- 
ing not more than three pounds per KKK) is declared to 
bear heavily upon the manufacturers of cheap ciga- 
rettes, selling at 10 cents per package of twenty. 




From our Washington Bureau 62ZAlbei Building 



To afford relief to this class of manufacturers with- 
out materially reducing the Government's revenue, it 
has been suggested that the tax by weight be abandoned 
and a graduated tax, beginning at $1 per 1000 on ciga- 
rettes selling at 10 cents or less per package (exclusive 
of State taxes) and ranging possibly as high as $6 per 
1000 on the highest priced varieties, be adopted. 

Sponsors of the plan believe it impossible to get ac- 
tion in the House of Representatives and will therefore 
await the arrival of the 1934 tax bill in the Senate. 

It is pointed out that the application of the process- 
ing tax on tobacco has placed manufacturers of the 
cheaper cigarettes at a heavy disadvantage, particu- 
larly where raw material and labor costs have ad- 
vanced. A reduction in the tax, it is contended, will 
meet the situation and permit them to continue in busi- 
ness. 




Cj3 Cj3 Ct3 



F]DUCED taxes on cigars also are being sought 
in Congress, where Representative Haines of 
Pennsylvania is seeking a rate of $1 per 1000 
on cigars retailing up to three cents. 

Discussing his proposal in the House of Repre- 
sentatives, Congressman Haines pointed out that at 
present, on a two-for-five-cent cigar, the Government 
receives eight cents a pound tax on the tobacco, in addi- 
tion to the five cents a pound processing tax, declaring 
that **the industrv cannot stand it." 

'* While it might cost the Government several mil- 
lion dollars if we were to reduce the rate of taxation on 
these cheap cigars, I venture the prediction today that 
in less than two years you would bring into the Treas- 
urv of the United States an increased revenue," he 
asserted. 

The processing tax, he told the House, has made it 
almost impossible for the 300 independent plants in his 
district, producing hand-made cigars, to produce these 
cheaper cigars. 

**I want the House to know exactly the situation in 
the cheap-cigar industry, because it means so much to 
our people," Mr. Haines continued. **The processing 
tax costs us approximately $1 per 1000. The N. R. A. 
has increased the cost to the manufacturer of these 
cigars, and when you note that 40 per cent, of the cigar 
manufacturers in the United States have not signed 
the P. R. A. and practically all of the people I repre- 
sent have signed the P. R. A., you can see the advan- 



Musings of a Cigar Store Indian 



By Chief "Young-Man-Smoke-Cigars'* 




N the first instalment of his reminiscences 
under the title, *' Who's Who, and Why, in the 
WTiite House," starting last week in the Sat- 
urday Evening Post, the late Irwin H. (Ike) 
Hoover, chief usher under nine administrations, wrote 
thus about smokes in connection with the lunch menu: 
** Cigars and cigarettes are passed to the men with the 
cotfee to be consumed in another room; but at this 
writing — 1931 — cigarettes, as yet, have not been passed 
to the ladies. Once or twice, women have been bold 
enough to ask for cigarettes and have been given them. 
Confirmed smokers are more apt to bring their own 
and steal off to their room or a quiet corner for a puff 
after meals. Even this is uncommon. The only smok- 
ing I have seen done at the table was on a few occa- 
sions when only men were present, and the suggestion 
came, of course, from the President. Even when the 
company is all male, they retire usually to one of the 
parlors or to the President's study for smoking." 



^^_^3_^ ^^^^^^m ^^^^^^h 

Cj3 Cj3 CJ3 



^=gj E have a hunch that things have changed a bit 
\f^ since those w^ords were written. W^e heard 
only the other day of a luncheon at which Mrs. 
Rainey, wife of the Speaker (we think it was) 
had a desire for a cigarette. She had someone ask 
Mrs. Roosevelt if it would be all right. The Presi- 
dent's wife, at first, seemed to take no notice of the 
question. Then, after a few minutes, in her natural, 
charming manner, she turned to Mrs. Rainey and said, 
' * May I have one of your cigarettes I I left mine in ray 
room." She took a cigarette and lighted it, thus set- 
ting the example for Mrs. Rainey and any others pres- 
ent who cared to smoke. The nice point of the story is 
that Mrs. Roosevelt does not particularly like cigar- 
ettes. She took only a few puffs, and then let it die. 
If you ask us, that was a fine sample of good manners. 




(Continued on Page 17) 



Thi Tohacco World 



CS3 Cj3 Cj3 



EORGE C. TYLER, theatrical impressario, in- 
troduces us to the Tuscan cigar in the same 
issue of the Post. Writing enthusiastically 
of Italy and F. Marion Crawford, the author, 
who lived there, Tyler bursts out: **Why, I even 
learned to smoke Tuscan cigars, which is a feat— 
though it's even more of a feat to like them. A sort 
of a two-fisted stogie, very cheap, that tastes best after 
you have burned a fourth of it off in a candle flame. 
Once you learn not to let them bluff you, they make any 
other'cigar taste like milk and water. The first time 
I fired one up in Crawford's villa at Sorrento— that 
was another place to make your heart miss a beat the 
first time you saw it— he took me politely by the arm 
and led me into the garden, intimatmg that he d be 
charmed to sit with me in the open air untd I'd quite 
finished it. ' ' 

Vehr%tary 15, 1934 




S Print er^s Ink says, when Frank Finney in his 
article, '* Grand Opera, Symphonies and 
Cigarettes," vigorously announced his belief 
that high-brow music was poor selling ammu- 
nition to waste on low-brow radio audiences he left 
himself wide open to reply. Out of the numerous com- 
ments concerning his article Printer's Ink chose four 
that reflect fairly the opinions of readers who have 
read Mr. Finney's remarks with aversion and sym- 
pathy. And out of those four, we cull the following 
excerpts as definitely interesting to our readers : 



Cj3 Ctj Cj3 



M. D. MURPHY, advertising manager, Sloan 
Valve Company : Specifically, can grand opera 
or symphony programs sell cigarettes? I 
question whether Mr. Finney knows. My guess 
is that 15-cent cigarettes are the most popular be- 
cause, midway between truly cheap brands and luxury 
brands, they have been given an aura of social accepta- 
bility. With the exception of a fear motive campaign 
to stout persons, how many '* common people" have 
ever looked out at you from a cigarette advertisement I 
The model is always indubitably of the better sort, or, 
if an actual attest is used, he or she is most usually a 
person of distinction. :Maybe the 15-cent cigarette 
makers have been wrong all these years. If so, they 
have certainly profited by their mistakes. 





Cj3 Cj3 Cj3 



LEN E. SHEARS, copy staff, Henri, Hurst & 
McDonald, Inc. : Of our group, all but one had 
heard the Aida broadcast last Saturday after- 
noon. Would they buy Luckies? Opinions 
differed. Those who liked Luckies would continue to 
smoke them. Those who didn't care for them wouldn't. 
But all agreed that Luckies were brought to their at- 
tention through the opera program more forcefully 
than from any other medium. Certainly the program 
was drawing enough listeners to insure a most fertile 
audience for its message. And there lies the point. 
Opera and sjTiiphony won't sell anything. That's not 
their province. Their sole purpose on a commercial 
program is to create an audience for the advertiser's 
message. 



Ct3 Ctl Cj3 



OROTHY BARSTOWs director of radio, Mc- 
Cann-Erickson, Inc.: Notwithstanding Mr. 
Finney's bitter experience — ^he says ** adver- 
tising is not a show to entertain the public"— 
radio is show business and nothing else but. And 




radio advert isinj^- is n show to ontortain the public. 
The bigger the show, the better the audience, the wider 
the influence of the advertising message. And useful 
as are scientific analvses and consumer surveys and 
sales tests, and valuable as are ex])erience and judg- 
ment, still in the end the show is the thing, and all is 
of no avail without that mysterious brand of genius 
called sho\Mnanship. 




D. FERXALD, vice-president, Earnshaw, 
Earnshaw- Young, Inc.: In addition to the 
primary handicap of not getting your money's 
worth of audience to begin with, one very 
practical reason why classical programs can't do much 
besides ''cultivate good will" with those who do listen, 
is the tremendous restraint i)laced on commercial an- 
nouncements when the program itself is so lofty. 



Rulings on Tobacco Contracts 




EN administrative rulings, which interpret and 



clarify certain provisions of the tobacco pro- 
duction adjustment contracts, have been an- 
nounced bv the Ai»ricultural Adjustment Ad- 
ministration. According to the rulings, the limitation 
placed upon contracting producers not to increase their 
1934 acreage of basic crops for sale over the 1932 or 
1933 acreage, includes the acreage of small grains 
planted, annual row cr()i)s that are fed in the field, 
hay and seed crops harvested, and all crops removed 
from the land bv man. 

The ruling interprets the limitation upon livestock 
to include beef cattle and shee]). if tliey are designated 
by law as basic commodities, and states that the limita- 
tion follows the producer and not the land. AVhile the 
number of dairy cattle is limited in the contract, the 
volume of milk and its products ])roduced are not. 

The estimated number of ])ounds of tobacco stolen, 
or destroyed by fire may be included in the base pro- 
duction figure, if satisfactory proof of the loss is given 
to the county committee. 

The provision in contracts hr which tenants are 
not to be reduced in number ])elow those on the farm 
in 1933, is interpreted to apply to all share-tenants or 
share-croppers who gain a substantial ])art of their 
income from the tobacco they grow on the farm, 



whether or not they maintain residence of the farm. 
Also, farmers who sign contracts are prohibited from 
producing tobacco as owner, o})erator or tenant, and 
are restrained from demonstrating for tobacco pro- 
duction, on any farm not covered by an adjustment 
contract. 

Release of rented acres for i)lanting to crops to be 
harvested in 1935 will be given only after the 1934 
tobacco crop has been harvested. 

The new regulations also define the interest of the 
share-croppers or tenants, as set out in contracts for 
Burley, fire-cured, and dark air-cured tol)acco, to mean 
that such tenants shall ])articii)ate in the first payment 
in proportion to their interest in the entire acreage. 
Thus, if an owner has a total tobacco acreage of fifteen 
acres in 1934, and ten acres is grown by a tenant for 
half of the proceeds of that tobacco acreage, the owner 
should have an interest in the i)ayment of two-thirds 
while the tenant's interest would be one-third. 

The rulings clarify the status of those authorized 
to sign contracts in a re]»res(Mitative capacity. Oflicers, 
or representatives who have been authorized ])y filing 
of a statement under corporate seal, may sign for cor- 
|)orations; executors, administrators, receivers, guar- 
dians, may sign for their fiduciary by ])resenting eourt 
orders; agents or managers for producers may sign if 
given power of attorney. 



President St. John's New Deal for Demuth 




ECOMIXG i)resident of the Wm. Demuth C^om- 
pany on January 15th last, after sixteen years' 
affiliation with that well-known pipe manu- 
facturing firm, George St. John, Jr., in an oi)en 
letter to the jobbing trade announces a comi)lete and 
sweeping change in the company's policies and official 
personnel, and gives a personal i)ledge of rigid i)iice 
maintenance on all of its products from this time on. 

Not only is the choice of Mr. St. John as chief 
executive of the Demuth < ompany a richly deserved 
recognition of his long and earnest ^^tTorts on behalf 
of that organization; but the news that he is now in 
control of its operations is a denouement which will be 
applauded for personal as well as business reasons 
by a host of his well-wishers throughout the trade. 
For but few outstanding figures in the pipe field enjoy 
such widespread respect and confidence and so many 
loyal friendships as does the new W. D. (■. head. His 
taking up the reins of office having occurred simulta- 
neously with a complete leorganization of the com- 
pany's official personnel, Mr. St. John has already 
taken a leaf from the code of Franklin D. Roosevelt 
and has made himself virtual dictator of W. D. C.'s 



management and futun* trade relations. 

Joining the Demuth forces in 1918 in the capacity 
of an accountant, Mr. St. John subsequently became 
factory manager, in which capacity his achievement of 
cutting factory costs nearly six per cent, resulted in 
his bein<i: named vice-president. In that role he has 
i)een a familiar figure to the trade, who have long been 
aware of his guiding theory that it is not only plain 
justice but sound business* to ''Protect and aid the 
Jobber and the Dealer.*' 

In explaining the campaign ])lans for the coming 
year, Mr. St. John stated that W. D. C. will shortly 
launch a complete new merchandise program, based on 
a startlingly new ])rocess of briar p(»rfection which will 
not only result in added ])ublic appreciation of W. D. C. 
quality, but materially increase the sales and profits 
of the trade. A striking national advertising cam- 
paign will herald the introduction of the new line. But 
perhaps most important of all, Mr. St. John points 
out, is the new company policy and his personal pledge 
and guarantee that hereafter the new Demuth pipes 
** will never be sold by any national chain for a single 
penny less than list price.'' 

Thi Tobacco World 



ARE YOU A 






"^^ 



Those untidy habits 

come from jangled nerves 




It's bad enough to look untidy— 
ill-groomed. 

But it' s twice as bad when you 
think that those nervous habits 
are a sign of jangled nerves ... a 
friendly signal that says, "Find 
out what's the matter." 

So, if you catch yourself muss- 
ing your hair, biting your nails, 
chewing pencils — or suffering 
from any other of those countless 
little nervous habits — 

Get enough sleep and fresh air 
— find time for recreation. Make 
Camels your cigarette. You can 






:»1 



\im 






How 



"" ^?j^; '"-»' 






smoke as many Camels as you 
please, for Camel's costlier tobac- 
cos never jangle your nerves. 



COSTLIER TOBACCOS 



Camels are made from finer, MORE EXPENSIVE 
TOBACCOS than any other popular brand of cigarettes! 




THEY NEVER GET 
ON YOUR NERVES! 



TllUr ly I CAMEL CARAVAN f»ataring CUn Cray* CASA LOMA Orchm.tra and othmr H.adlin^r, Ev*ry Tayday and 
lUNt IN! Thursday at 10 P. M.,E.S. T.-9P. M.. C. S. T.-S P. M.,M.S. T.^7 P. M..P.S. T.. ov.r WABCColumbna Network 



Pehrmry 1$, 1934 



Tobacco Agreements Tentatively Approved 




ECRETARY OF AGRICULTURE HENRY A. 
AVALLACE has tentativoly approved three 
marketing aiifreenients for dark air-cnred and 
fire-cured tobacco, which are de^iiined to im- 
prove prices to growers. The agreements have been 
sent to contracting tobacco firms for their signatures. 
The agreements cover practically the entire amount of 
fire-cured and dark air-cured used in domestic trade 
and a large portion sold for export. They provide for 
the purchase of specified minimum quantities of to- 
bacco at certain minimum average prices. 

Under Agreement Xo. 1, three by-product com- 
panies would agree to take, up to a maxinmm of 
15,000,000 pounds, at a price of 1.25 cents per pound, 
the unsold surplus tobacco of fire-cured types 22, 23 
and 24 and Green River type 36, thus providing an out- 
let for the grades of tobacco which do not bring a 
minimum bid of l^A cents per ])ound on the market. 
Unsold fire-cured tobacco of type 21 which does not 
bring a minimum bid of 1 cent ])er ])oun(l on the market 
would be taken by the by-product companies, up to a 
total of 2,000,000 pounds, at a minimum of .8 cent per 
pound. As a result of the public hearing held on Jan- 
uary 18th the mininmm price bid submitted on the mar- 
ket for type 21 was reduced from 1.5 cents per pound 
to 1 cent per pound. The termination clause has also 
been modified so that the Secretary may end the agree- 
ment on the first dav of anv month on ten davs' notice. 
Types 35 and 37, contained in the first proposed agree- 



ment, have been eliminated. 

Agreement No, 2, covering tobacco used in snufT 
manufacture, obligates three snufT companies to pur- 
chase a total of 31,600,000 pounds of tobaccos with 
mininmm average prices ranging from 7V\ cents to 14 
cents per pound. The obligation of the companies to 
purchase will be proportionately reduced if the 1933 
l)roduction of the types used proves to be less than 155 
million pounds. 

Agreement No. 3, covering dark air-cured tobacco, 
types 35, 36 and 37, used in the manufacture of chewing 
and smoking tobacco, obligates each contracting manu- 
facturer to purchase a (luantity of these types at least 
equal to last year's usings at an average price of not 
less than 7 cents j)er pound for types 35 and 36, and 7Vij 
cents per pound for type 37. It also has a provision 
for a proportionate reduction in the amounts of the 
purchase, if the 1933 production is below the official 
estimates. 

Agreement No. 1 has been sent for signature to 
forty leading companies which buy the dark types of 
tobacco. Agreement No. 2 has been sent to the Ameri- 
can Snuff Company, George W. Helme Company, and 
the United States Tobacco Comi)any. Agreement No. 
3 has gone to the R. J. Reynolds Company, P. Lorillard 
Company, Liggett & Myers Tobacco Company, Ameri- 
can Tobacco Comjiany, Brown & Williamson Tobacco 
Corporation, and the Ryan-Hampton Tobacco Com- 
pany, 



To Appeal for Tax Reduction 




URSUANT to a call issued by the Tobacco 
Merchants Association of the U. S., a meeting 
of cigarette, tobacco and snuff manufacturers 
was held at the Hotel Biltmore, New York, 
N. Y., on Tuesday, February 6, 1934, for the purpose 
of discussing and considering the Internal Revenue 
Taxation of Cigarettes, SnufT, and all forms of Smok- 
ing and Chewing Tobaccos. S. Clay Williams presided. 
After a tliorough discussion of the entire tax 
problem in which emphasis was laid on the heavy tax 
load now borne by the tobacco industry, it was decided 
that an appeal be submitted to Congress for a sub- 
stantial horizontal tax reduction in the tax rates on 
cigarettes and all kinds of smoking and chewing to- 
bacco and snuff, such reduction to be applied in an 
equal percentage to all of these products. 

The meeting also went on record in opposition to 
the establishment of any differential in the tax on 
cigarettes or on smoking and chew-ing tobacco and 
snuff. 



A committee with full power to present the views 
of this meeting to Congress and to take such steps as 
may be deemed wise and proper has been appointed as 
follows : 

S. Clay Williams, chairman; J. W. Abbott, Jesse 
A. Bloch, 0. H. Chalkley, AVilliam M. Dillon, John C. 
Flvnn, F. L. Fuller, Paul M. Hahn, Junius Parker, 
W! R. Perkins, William T. Reed, H. P. Taylor (of 
Taylor Bros., Inc.). 

The following companies were represented at the 
meeting: American Snuff Co., The American Tobacco 
Co., Bendixen Tobacco Co., Benson & Hedges, The 
Bloch Bros. Tobacco Co., Byfield Snuff Co., Conti- 
nental Tobacco Co., Crimson Coach, Inc., De Nobili Ci- 
gar Co., David Forry Tobacco Co., Geo. W. Helme Co., 
Larus & Bro. Co., Liggett & Myers Tobacco Co., 
P. Lorillard Co., Pliilip Morris & Co., Ltd., Penn To- 
bacco Co., R. J. Reynolds Tobacco Co., Ryan-Hampton 
Tobacco Co., Scott Tobacco Co., Scotten-Dillon Co., 
United States Tobacco Co. 



Lucky Strike Broadcasts Opera Premiere 




ERRY MOUNT," Howard Hanson's opera 
in English, which had its world premiere at 
the Metropolitan Opera House on Saturday, 
February 10th, and which w^as broadcast to 
music lovers throughout the country over combined 
coast-to-coast NBC-WEAF-WJZ networks, through 
the courtesy of the American Tobacco Company, is an 
ail-American grand opera. 

a 



Composed by an American to a libretto by another 
American, Richard Stokes, it concerns the Puritans of 
New England and was inspired by a native author, 
Nathaniel Hawthorne. In addition the principal role, 
that of the clergj^man. Wrestling Bradford, was 
taken by the famous American singer, Lawrence Tib- 
bett, and the scenery has been done by the American 
designer, Jo Mielziner. 

Tht Tobacco World 




THE HEIGHT OF GOOD TASTJE 

Simif UaSaca? ami ONLY t/ie C^nte^^ ^£em€6 



February 15, 1934 



it 




STOOPNAGLE AND BUDD WITH CAMEL 

OLOXEL STOOPNAGLE AND BUDD, popu- 
lar CBS comedy team, have been signed by the 
K. J. Reynolds Tobacco Co., makers of Camel 
cigarettes, as featured i)ers()iialitics on the 
Camel Caravan heard ever> Tuesday and Thursday 
from 10 to 10:30 P. M., Eastern Standard Time, over 
the coast-to-coast WAH(^-C\)lumbia network. The two 
comedians made their first appearance on this program 
Tuesday, February loth. 

In addition to presenting- the very latest inventions 
and stuff, as is their wont, the (\)lonel and Budd will 
serve as masters of ceremony. Glen Gray and his Casa 
Loma Orchestra, a regular feature of the Camel Cara- 
van since its inception last December, will continue to 
purvey their danceable tunes with Pee Wee Hunt and 
Kennv Sargent as vocalists. 

In order that they might accept this contract, which 
is for a long-term engagement in two half -hour si)ots 
each w^eek, the Colonel and Budd were granted a re- 
lease from the Pontiac program, on whicli they have 
been featured since December Kith. At the time the 
release was granted their contiact with General Motors 
had several weeks to run. The comedians concluded 
their engagement with Pontiac during the broadcast of 
Wednesday, February 7th, switching to the Camel Car- 
avan six days later on Tuesday, February 13th. 

AMERICAN SNUFF EARNINGS INCREASE 

American Snuff Com])any shows for li)33, as certi- 
fied by independent auditors, net income of $2,002,092 
after 'depreciation and Federal taxes, etiuivalent, after 
the 6 per cent, preferred dividends, to $4.12 a share on 
433,100 shares of connnon stock, exclusive of 6900 
shares of common stock held in the treasury. This 
compares with $1,818,025, or $3.r)9 a share, on 440,000 
common shares in 1932, including shares held in the 
treasury. 

LIGGETT & MYERS ANNUAL MEETING 

Notice has been given by the Liggett & ^fyers To- 
bacco Co. that the annual meeting of the stockholders 
of that company for the election of directors and the 
transaction of such other business as may ])roi)erly 
come before the meeting will be held at the Home Office 
of the companv. No. 15 Exchange Place, Jersey City, 
N. J., on Mondav, the twelfth day of March, 1J)34, at 
11 o'clock A. M! 

Record of stockholders entitled to vote at this 
meeting will be taken as of 3 o'clock P. ^I., February 
15, 1934. 

CONSOLIDATED CIGAR EARNINGS 

Consolidated Cigar Corporation and subsidiaries, 
according to a preliminary report for 19.*>.S, had net 
profit of $497,779 after depreciation. Federal taxes, 
etc., equal, after allowance for dividend requirements 
on subsidiary preferred stock, to $5.72 a share on 
84,898 shares of GVi per cent. ])rior preferred stock 
outstanding at the close of the year. Consolidated 
profit in 1932 amounted to $935,853 after taxes, de- 
preciation, etc., but before considering reduction of 
leaf tobacco inventories as of July 2, 1932, to the vjdue 
determined by the management, which resulted in a 
charge of $1,242,650 made directly against surjilus ac- 
count. For the quarter ended December 31st net ])rofit 
was $224,084, after taxes and charges, compared with 
$217,565 in the December quarter of 1932. 




OLD GOLD'S NEW AIR SERIES 

FD FIOIMTO'S famous AVest Coast Orchestra 
with Dick Powell, (ilm star, as singing master 
of ceremonies, inaugurated a new series of Old 
(Jold programs over a nation-wide WABC- 
Columbia network on Wednesday, Februcuy 7, at 10 
P. M., Eastern Standard Time. Featured vocalists and 
novelty groui)s included the Three Debutantes, the 
Fireaters, Muzzy Marcellino, Lief Frickson and Kay 
Hendricks. Kenneth Xiles announced. The series 
oriiiinated in San Francisco from the studios of KFRC. 
The strains of ''Rio Rita," Fiorito's traditional 
theme, ojjened the l)i-oadcast, following which the band 
was heard in "You've (lot Fverything." The second 
selection introduced California's clowning crooner, 
Muzzy ^larcclliiio, with the Del)s — Margery, Hetty and 
l),,i--iii '* Dancing on a Ixainbow" and "Mine." Lief 
Frickson, former Los Angeles doorman, was heard next 
in his baritone^ version of "(Join' to Heaven on a 
Mule," after which the girls returned for "Night 
Owl." Old (fold's "You're an Old Smoothie" sequence 
terminated the tirst i)ortion of the broadcast. 

Part II featured Dick Powell's interpretation of 
*'Did You Fver See a Dream Walking?" interpolated 
by "I'm a Dreamer." Other features were Ray Hen- 
dricks' "Vieni Su," Ted Fiorito's own piano tricks, 
and instrumental novelties of the Fireaters in "Liza." 
"The (loose and the (lander," interpreted by Muzzy 
Marcellino and the Debutantes; Lief Frickson 's ver- 
sion of "Old Black Joe," and the entire company in 
** Hell's Bells," completed the ])remiere. 



GENERAL CIGAR CO. EARNINGS 

Tile General Cigar Company hnd 1933 net income 
of i};721,r)20, comjjared with net income of $2,058,370 in 
VXV2. The VXVA net was after all deductions, includ- 
ing $1,00(1,424 adjustment of iuventories of raw mate- 
rials as of September 'Ul. 



BAYUK EARNINGS FOR 1933 

Report of Bayuk Cigars, Inc., for the year ended 
December .'H, VXV.], certitied by independent auditors, 
shows net ])rolit of $()()4,711 after depreciation, inter- 
est, amortization, taxes, etc., ecpiivalent after pre- 
ferred dividends, to $.').! 1 a share on 90,851 no-par 
common shares outstanding. This compares with net 
loss of $l,2()2,r)5() foi' the previous year. 

The 19.'?.'^ earnings are exclusive of $60,179 undis- 
tril)uted earnings for the year of controlled company 
not consolidated. 



P. LORILLARD CO. ANNUAL MEETING 

Xotice has been given by the P. Lorillard 
Co. that (in lieu of closing the Stock Transfer Books) 
:) v. M. Tucs<lay, February l.'J, 19:J4, is fixed as the 
record date for the determination of the stockholders 
of the comj)any entitled to notice of and to vote at the 
aiinual meeting of stockholders to be held on March 13, 
1934, and that only stockholders of record at 3 I'. M., 
on February l.'>, 19.'>4, shall be entitled to such notice 
(tf and to vote at such annual meeting, notwithstanding 
anv transfer of anv stock on the books of the com- 
pany aftei- said record date. 



P. LORILLARD CO. REPORTS 

The p. Lorillard Co., for MKVA, reports net income 
of $2,380,254, aft<'r various charges, compared with 
$4,556,052 in 1932. 

Tht Tobacco fVorU 




arettes 



Of all the ways in 

which tobacco is used 

the cigarette is the 

mildest form 

You know, ever since the In- 
dians found out the pleasure 
of smoking tohacco, there have 
been many ways of enjoying it. 

But of all the ways in which 
tobacco is used, the cigarette is 
the mildest form. 

Another thing — cigarettes are 
about the most convenient smoke. 
All you have to do is strike a 
match. 

Everything that money can 
buy and everything that Science 
knows about is used to make 
Chesterfields. The tobaccos are 
blended and cross-blended the 
right way — the cigarettes are 
made right — the paper is right. 

There are other good cigarettes, 
of course, but Chesterfield is 

the cigarette that*M 

MILDER 
the cigarette that 
TASTES BETTER 
we ask you to try them 



yA£y^a^/y 



© 10J4. liGcnT & hirrns Torm m Co. 



Vehruary i$. /y?; 



t3 



MIA. 




f)HIbADEl2 




F YOU HAPPEN arouiid Ninth and Columbia 
Avenue between ,*> and 4 o'clock in the after- 
noon, wlien the first sliift is comine; ofT and the 
second going on, you will be .justified in jump- 
ing- to the conclusion that Bayuk is continuing the rec- 
ord which made 1933 the comiiany's banner year in 
unit production and sales, exceeding the peak years 
1927 and 1928. You will find it easy, in fact, to believe 
that Januarv this vear was considerablv better than 
the same month last vear. Those workers sure do 
swarm in and out in hordes. 

The Arthur Sclndtz Co. has been doing an inten- 
sive sales job on Phillies in the Erie (Pa.) territory, 
assisted by E. T. Clifford, Bayuk salesman. 

The sales force of the Kochester, N. Y., branch, 
under ^lanager ^I. F. Westplial, also reports unusual 
successes recently in placing Phillies among the dealers 
in that territory. 

Harry Rice, of the N. Rice Ciuar Co., Pittsburgh, 
Pa., a recent visitor, said tliat their increasing business 
necessitated the addition of three trucks and six new 
salesmen's automol)iles. 



The management of the cigar stand in the Art 
Club of Philadelphia has been acquired by Yahn & 
McDonnell, local distributors, and w'ho now" operate 
the largest chain of hotel, club and restaurant cigar 
stands in this city. 



Monticello smoking tobacco, a high-grade brand of 
John Wagner & Sons, is enjoying a splendid sale and 
is making new friends constantly in ever-widening ter- 
ritories. The ** Wagner'' brand of cigars is also show- 
ing a splendid increase in demand at this time. 



The Philadelphia Association of Tobacco Distrib- 
utors held their regular meeting on Monday evening 
with a goodly number in attendance. Routine business 
was transacted and a feeling of optimism in regard 
to better business conditions was much in evidence. 



The Wholesale Confectioners Association of Phil- 
adelphia held their first annual banquet at the Hotel 
Benjamin Franklin on Saturday night wdth about 800 
guests in attendance, including practically all of the 
tobacco jobbers in the city. The affair was highly en- 
joyable and voted a definite success. 



Trade Notes 



John L. McHuerty, U. S. Representative for the 
Romeo y Julieta brand, writes from Havana that con- 
ditions there are improving and ample shipments of 
this high-grade brand will soon be coming through. 



Joe Banker and Barton Lemlein, of M. Sacks & 
Co., New York manufacturers of high-grade cigars, 
visited John Wagner & Sons last w^eek, and reported 
business very good. 



Sam Adler, of Villazon & Co., Tampa manufac- 
turers, was in town last week displaying a new" size 
in the Villazon line front-marked Roosevelts and re- 
tailing at fifteen cents. Sam reported this new size 
selling like the proverbial **hot cakes." 



The Marcello, Mint Perfecto, and As Y^'ou Like It 
brands, controlled by Yahn & ^fcDonnell cigars, are 
enjoying a much wider distribution in the past few 
weeks and enjoying a splendid increase in sales as 
a result. 



The King Edward brand, product of John Swisher 
& Sons, Jacksonville, Fla., is again selling in the tw^o- 
for-five cent class, after being in the three-for-ten class 
for a time, and sales are responding to the reduced 
price. 



Benjamin Lumley has just returned from a trip 
to Washington and Baltimore, and reports a splendid 
sale on his Garcia y Vega brand. So far this year 
business is far ahead of the same period of last year, 
and every indication points to the fact that it will 
continue in that direction. 



Harry Tint reports from St. Petersburg, Fla., that 
he is having a splendid time enjoying the sunshine and 
balmy breezes in that city, and expects to be at the old 
stand 1420 Chestnut Street, wiiere he dispenses ** noth- 
ing but the best" in high-grade cigars and other to- 
bacco products by February 19th. 

7A# Tobacco World 



ROWN & WILLIAMSO 

TOBACCO CORP. 

UNIONIZE 



Louisville. Ky., Dec. 13, 1933 — The Brown 8b 
Williamson Tobacco Corporation announced yes- 
terday that it had signed an agreement with the 
tobacco workers' union whereby company fac- 
tories (located at Louisville, Petersburg, Va., and 
Winston-Salem, N. C.) become union plants, and 
WINGS CIGARETTES, SIR WALTER RA- 
LEIGH SMOKING TOBACCO and other B. & 
W. products will carry the union label as soon 
as necessary labeling equipment can be installed. 



(extract from last month's trade press) 



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SnokingTobacco 

t piPEANoCNiWTTCSJ 



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BROWN & WILLIAMSON TOBACCO CORP.. LOUISVILLE, KENTUCKY 

Brown 8t Williamson products have been designccl to bring you the nt^ost profit m all lines and 
price*. New products are added to fit the times. Are you getting your share of profit from these live, 
selling items: Dial Smoking Tobacco. Sir Walter Raleigh Smoking Tobacco. Raleigh Cigarettes. 
Kool Cigarettes. Golden Grain Tobacco. Target Cigarette Tobacco and Bugler Cigarette Tobacco. 



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CIGARETTE 
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Th* RCAL Cigar**** T*k*cc* 



February i$, 1934 



i$ 




PROCESSING TAX REDUCED ON FLUE-CURED 
TOBACCO USED FOR PLUG OR TWIST 

HE following bulletin has been released by the 
Tobacco ^Merchants Association, in reference 
to reduction in Tobacco Processing Tax: 

AVe quote below an official statement issued Feb- 
ruary 1st bv the A<>ricullural Adjustment Administra- 
tion, which is self-explanatory: 

"Secretary of Agriculture Henry A. AVallace has 
issued a certificate ordering a reduction of nine-tenths 
of a cent per pound in the processing tax imposed on 
tlue-cured tobacco used in the manufacture of plug and 
twist tobacco products, it was announced today by the 
Agricultural Adjustment Administration. 

"According to the certificate, the ditTerence be- 
tween the 4.2 cents per pound on flue-cured tobacco, 
and the new rate of 3.3 cents per pound farm sales 
weight, on such tobacco when processed into plug or 
twist, will be refunded to processors. 

"The abatement in the amount of the U\k was 
ordered after a public hearing and investigation re- 
vealed that plug chewing tobacco and twist, made from 
flue-cured tobacco, were of such low value as compared 
with the quantity of tobacco used in their manufacture 
that a tax in excess of the new rate would tend to cause 
a shift to other tobacco commodities in the manufac- 
ture of plug chewing and twist.'* 

Effective Date of Reduction 

While the elYective date of this reduction is not 
stated in the above-quoted statement, we have been 
advised by the Depart ment over the telephone that il 
became effective on Frbmarij Ist and that it would 
apply to processing taxes due and pmfahle after Feb- 
ruary 1st. Thus, tJtr tax nu sucJt tohaeco, processed 
during the wuuth ftf January, which tax does not be- 
come due and payable until \\w end of Fel^ruary, will be 
at the new rate. 

The Readjusted Rates 

As a result of the .9<^ per i)ound reduction in the 
basic rate on flue-cured to])acco used in the manufac- 
ture of plug and twist tobacco products, the rates on 
such tobacco when used for the purposes indicated, will 
be as follows: 



Farm Sales A\'eight 
In Processing Order 
Stem not removed 
Stem removed 



Old Hate 
4.2^ per lb. 



Xew Hate 
3.3^ per lb. 



a 



4.7c 



( i 



a 



3.1t 

4.8^ 



( i 



( ( 



a 



n 



It is to be assumed, of course, that adequate in- 
structions will be issued by the Department relative to 
this tax readjustment stating how it is to be computed 
or applied, and reported, which instructions will doubt- 
lessly be in the hands of the various revenue collectors 
before the end of this month. 



BID FOR WHELAN STORES REJECTED BY 

REFEREE 

Refcret' in bankruptcy Irwin Kurtz last week in- 
structed the Irving Trust Conqiany, as trustee in bank- 
ruptcy for the Ignited Cigar Stores of America, to 
reject an offer made l)y the Branfield (\)rporation for 
the Whelan Drug Stores, a subsidiary of United Cigar 
Stores. 

16 



Kurtz told the trustee to co-o])erate with the 
United 's reorganization committee in making a bid 
for the Whelan stores if Referee Oscar W. Ehrhorn, 
to whom the case has been referred, should insist on 
})roceeding with the sale on P\'bruary 10, the deadline 
set for acceptance or rejection of the offer. 

A representative of the Irving Trust at last week's 
hearing told Kurtz that the Branfield Corporation's 
cash offer of $5,179,000 would mean that creditors 
whose claims were allowed might receive but from 35 
to 39 cents on the dollar. 



NEW LUCKY STRIKE DISPLAY 

A new and striking Lucky Strike window display 
has just been released by the American Tobacco (V)m- 
pany, which is attracting wide interest because of its 
unique appeal. The new display consists of an elec- 
trically operated revolving wheel on which are red let- 
ters spelling "Lucky Strike," and a red ball bounces 
around the wheel and stoi)s on these letters. Across 
the top of the wheel is a slide in which ai)pears moving 
sentences describing the reasons Lucky Strikes are so 
good and why smokers should smoke that brand. 

The new display will be seen in all i)arts of the 
country just as soon as a sufficient sui)ply can V)e ]iro- 
cured. 



Under Billy Penn's Hat 



George Stocking (Arango y Arango), manufac- 
turers of the Don Sebastian line, was a visitor in town 
last week and reports business on the up-grade. John 
Wagner & Sons are doing a good job in this territory 
and have a splendid distri])ution and sale (m this high- 
grade brand. 



Mannie Perez, of Marcelino Perez & Co., Tanqia 
manufacturers of high-grade Havana cigars, was in 
town last week and reports a brisk business on his 
Redencion brand. Yahn & McDonnell, local distrib- 
utors, report a good demand on this fine line, wuth 
the Redencion Pals increasing steadily. 



E. Rosenthal, representing (lonzales & Sanchez, 
Tampa, was in town this week with a new size known 
as G. & S. panatela to retail at five cents, which has 
all the a])pearance of being a winner. The (i. & S. per- 
fecto retailing at five cents has been a big seller with 
Yahn & McDonnell, local distributors for some time, 
and the new panetela will make an excellent running 
mate for this brand. 



Paul L. Brogan, vice-jjresident of Yahn & McDon- 
nell cigars, was called home from his visit in Florida, 
where he had gone to recuj)erate from the effects of 
a severe cold contracted during the rush (»f business 
in the holiday season, on account of an injury to his 
son suffered in a sledding accident. Th(» boy's arm 
was fractured in two places, but Paid reports the 
breaks are mending nicely and expects the boy will 
soon be as "good as new." 

The Tobacco World 



News from Congress 

(Continued from Page 6) 



tages 




which many of the cigar manufacturers have. 
Then when you know that the Philippines are today 
taking the cheap market away from the American 
cigar manufacturer and the American growers of to- 
Imcco, you can further ap])reciate the situation." 

As evidences of the difficulties which this class of 
manufacturers is laboring under, Representative 
Haines submitted telegrams asking for relief from the 
Porto Vana ('igar (^ompanv, Dallastown; F. X. Smith 
Sons Companv, McSherrystown; W. J. Neff and Com- 
pany, Red Lion, and the Fast Prospect (Ugar (Com- 
pany, Fast Prosi)ect. 

CJJ Ct3 Ct) 



PPROVAL of the code authority elected by the 
cigar container industry to serve until .June 
l(;th next, or until their successors are ap- 
pointed, was announced February 12th !)> Re- 
covery Administrator Johnson. The meml)ers (.f the 
authoritv are as follows: 

Rodgers Xeelv, AUentown, Pa., representing the 
National Cigar Box Manufacturers Association, chair- 
man; Charles Fisher, Fastern (^igar Box Manutac- 
turers Association, I^altimore; Harry W. Buckley, 
^Vestern Cigar Box Manufacturers Association, Lima, 
-George J. Snvder, Philadeli)iria, representing un- 
affiliated manufacturers, and B. S. Sentz, Red Lion, 
Pa • Harry F. Unger, Xew Brunswick, X. J., and David 
Gross, Tampa, Fla., representing the industry as a 
whole. 



CUBAN CONDITIONS IMPROVE 

The series of political developments that occurred 
during Januarv, culminating in the installation of 
Col Carlos Mendieta as president, were tollowed by 
a return to more tranipiil conditions that have restored 
a measure of confidence and optimism to the business 
communitv. it is vet loo soon to gauge accurately 
the full effect of the political change, but a restoration 
of deferred consumer demand, concurrent with a be- 
<nnning of stock replenishments on the part ot retail 
merchants, is in evidence. A deterrent factor in tor- 
ei-n imrchasing, however, is the apparent widespread 
belief among the imimrt trade that a revision of the 
reciprocity treaty between (Hiba and the I nited States, 
with important 'reductions in the Cuban tariff struc- 
ture, is imminent. . , , • i i 

(Conditions in the tobacco industry improved dur- 
ing Januarv, the demand for high tobaccos increasing 
Prices are 'above the levels of last year, and stocks ot 
PJ33 low-grade filler are reported to be nearly ex- 
hausted. The strike, which paralyzed activities of most 
(»f the large Habana cigar factories, has been partially 
settled, and on January 2()th only two of these factories 
remained closed. The outlook for the 1934 crop is 
micertain, owing to varying weather conditions .n dit- 
ierent producing areas. Fxports of tobacco and to- 
bacco products during December were valued at. $945,- 
72G, as against $1,056,193 during December, 1932. 

February 1$, 1934 




Exceptional cigar 
quality for a nickel 




Other sizes 

Lonilfetlowt .... 3 for 25^ 

Perfecto* I*^ 

Ariitocrats 2 tor 25^ 



Mfd. by r. LOBILLASO CO., INC. 



ilOtaM 



in I 



I 

1 



TOBACCO TRADE ORGANIZATIONS 



TOBACCO MERCHANTS ASSOCIATION 
OF UNITED STATES 



<^^ 



JESSE A. BLOCH. Wheeling W V.. 

CHARLES J. EISENLOHR. Philadephi^. Pa. .. 
JULIUS LICHTENSTEIN, New York, N. Y. ... 

WILLIAM BEST. New York, N- Y. •i..-. 

MAJ. GEORGE W. HILL, New York. N. Y 

GEORGE H. HUMMELL. New York. N. Y 

H H SHELTON. Washington, D. C 

WILLIAM T. REED. Richmond, Va. 

HARVEY L. HIRST, Philadelphia, Pa 

ASA LEMLEIN. New York. N. Y. 

CHARLES DUSHKIND. New York. N. Y. 

Headquarters, 341 Madison Ave., 



President 

'*'!!'.!!.'!!!." Ex-Presldent 

Vice- Preiident 

.Chairman Executive Committee 

Vice-Prendent 

.Vice-President 

, Vice-President 

Vice-President 

Vice-President 

Treasurer 

.Counsel and Managing Director 
New York City 



■••••••■< 



ALLIED TOBACCO LEAGUE OF AMERICA 

W. D. SPALDING, Cincinnati. Ohio vJ^lKsideS 

CHAS. B. WITTROCK. Cincinnati, Ohio Treasurer 

GEO. S. ENGEL, Covington. Ky. ........; SSJSS 

WM. S. GOLDENBURG, Cincinnati, Ohio ij^t^*» j 

ASSOaATED CIGAR MFRS. AND LEAF TOBACCO DEALERS 

TOHNH. DUYS. New York City Flrit'vice-Prelidw 

illLTON RANCK. Lancaster. Pa Second Vice-President 

D. EMIL KLEIN. New York City sS:retaS-Tieasurer 

LEE SAMUELS, New York City Secretary ireasurcr 

NATIONAL BOARD OF TOBACCO SALESMEN'S 

ASSOCIATIONS 

IRVEN M. MOSS, Trenton, N. J. ...•-.•• ISTretary-Treasurer 

ABE BROWN, 180 Grumman Ave., Newark, N. J secretary ireasurcr 

NEW YORK CIGAR MANUFACTURERS' BOARD OF 

TRADE 

.„„__,„ ....President 

^ikiit'^^i^iiMjii^'::::^^^^^^^^^ Vice-Pre.ide^ 

THE NATIONAL ASSOCIATIONS OF TOBACCO 

DISTRIBUTORS 

JONATHAN VIPOND. Scranton, Pa Tv!!««^ 

GEO. B. SCRAMBLING, Cleveland, Ohio ireawwer 



Eatabliihed 1886 



"BEST OF THE BEST 



9f 




^^^^1^ A. SANTAELLA & CO. 

Office, 1181 Broadway, New York City 

FACTORIES: Tampa and Ktp Wtat, Florida 



OUR HIGH-GRADE NON-EVAPORATING 

CIGAR FLAVORS 

Make tobacco melCow and amooth In charactat 
and impart a most palatable flavor 

rUYORS FOR SMOKING and CHEWING TOBACCO 

Write for List of Flavors for Special Brands 
BKTVN. AKOMATIZEB. BOX FLAVOKS. PASTE SWEETENEU 

FRIES & BRO., 92 Reade Street, New York 



Classiiied Column 

The rate foi this column i% three cents (3c.) a word, with 
a minimum charge of seventy-five cents (75c.) payable 
strictly in advance. 



Kt^CTratr5ifnt!tr^tB?"5iir^ 



ixir«vir/strrsvirr»itr*flt)«ririr8Ti 



POSITION WANTED 



CIGAR SALESMAN COVERING EASTERN PENNSYLVA- 
NIA and Local Territory desires connection. Large following. 
Address Box No. 580, "The Tobacco World." 



Newspaper and magazine advertising executive, thoroughly 
experienced, formerly with local newspapers and agencies, and also 
advertising manager. Position with firm desiring an advertising man, 
salesman or assistant to manager. Knows marketing, merchandis- 
ing and distribution. Salary not as important as opportunity to 
demonstrate actual worth and ability. References the highest. 
Address, F. H. Riordan, 5915 Webster Street, Philadelphia, Pa. 



CIGAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON 
Automatic Machines, wants a position. Also instructs beginners. 
Address Box No. 558, "The Tobacco World." 



FOR RENT 



OFFICE AND FLOORS FOR CIGAR MANUFACTURING OR 
STORAGE — No parking restrictions; good location; low rent; 
freight elevator and loading platform. Will divide. Metals Coating 
Company of America, 495 North Third Street, Philadelphia. 



HAVANA CIGARS 



BEER WITHOUT CIGARS, IS LIKE KISSING WITHOUT 
LOVE — Adopt as your slogan, "Kiss your beer, but love your ci- 
gars." Specially those Havana blended, "Good to the last PaflF," 
manufactured by A. Ramirez & Co., Post Office Box 1168, Tampa, 
Fla. Write them for particulars today. 



Tobacco Merchants' Association 
Registration Bureau, Jtw toS'cI^ 

Schedule of Rates for Trade-Mark Services 
Effective April 1, 1916. 

Registration, (see Note A), $5.00 

Search, (see Note B), 1.00 

Transfer, 2.00 

Duplicate Certificate, 2.00 

Note A— An allowance of $2 will be made to members of the Tobacco Her" 
chants' Association on each registration. 

Note B— If a report on a search of a title necessitates the reporting of mors 
than ten (10) titles, bat less than twenty-one (21), an additional charge of On* 
Dollar ($1.00) will be made. If it necessitates the reporting of more than twenty 
(20) titles, but less than thirty-one (31), an additional charge of Two Dollars 
($2.00) will be made and so an additional charge of One Dollar ($1.00) will b« 
made for every ten (10) additional titles necessarily reported. 



REGISTRATION 

CUSTOM MADE:— 46,290. For cigars only. November 14, 1933. 
Consolidated Litho. Corp., Brooklyn, N, Y. ("Customed Made" 
originally registered on August 5, 1913, by Kaufman, Pasbach & 
Voice, New York, N. Y., predecessors to Consolidated Litho. 
Corp.) 



TRANSFERS 

FLIGHT: — (U. S. Tobacco Journal). For cigars. Registered by 
Thoroughgood & Co., Janesville, Wis., March 26, 1886. Trans- 
ferred to Geo. Schlegel, Inc., New York, N. Y., and re-transferred 
to G. W. Van Slyke & Horton, Albany, N. Y., January 30, 1934. 

AMORADA:— 26,258 (U. S. Tobacco Journal). For cigars. Regis- 
tered December 4, 1902, by Schmidt & Co., New York, N. Y. 
Through mesne transfers acquired by the Consolidated Litho. 
Corp., Brooklyn, N. Y., and re-transferred to Grabosky Bros., Inc., 
Philadelphia, Pa., February 5, 1934. 



AMERADA: — 45,718 (Tobacco Merchants' Association). For ci- 
gars. Registered May 9, 1930, by the Amerada Cigar Co., Passaic, 
N. J. Transferred to the Consolidated Litho. Corp., Brooklyn, 
N. Y., and re-transferred to Grabosky Bros., Inc., Philadelphia, 
Pa., February 5, 1934. 

LOPEZ DE VEGA:— 16,718 (Trade-Mark Record). For cigars. 
Registered June 11, 1896, by Geo. Schlegel, New York, N. Y. 
Transferred to G. .■\. Kohler & Co., Yoe, Pa., February 5, 1934. 

FLOR DE ALWIN:— 17,098 (Tobacco World). For cigars, ciga- 
rettes and cheroots. Registered February 1, 1909, by Petre, Schmidt 
& Bergmann, Philadelphia, Pa. Transferred to John H. Witter, 
Newmanstown, Pa., and re-transferred to Federal Cigar Co., Red 
Lion, Pa., August 10, 1927. 

ALWYN :— 30,433 (Tobacco World). For cigars. Registered Sep- 
tember 24, 1914. by Kaufman, Pasbach & Voice, New York, N. Y. 
Transferred by Consolidated Litho. Corp., Brooklyn, N. Y., succes- 
sors to the original registrants, to Federal Cigar Co., Red Lion, 
Pa., February 7, 1934. 

LA CITATION: — 40,873 (Tobacco Merchants' Association). For 
all tobacco products. Registered October 26, 1918, by American 
Litho. Co., New York, N. Y. Transferred by Consolidated Litho. 
Corp., Brooklyn, N. Y., successors to the registrant, to E. Regens- 
berg & Sons, New York, N. Y., January 11. 1934. 



"What a welcome visitor 
The Tobacco World 
must be to wholesalers and 
retailers ! 

"If they are only half as 
interested in reading it as 
we ourselves are, we're glad 
our ad is in it regularly" — 

says an advertiser. 




\ 



V 
I I 



The importance of attractive and dependable containers for 
fine cigars is recognized by the progressive cigar manufacturer. 

Generally the brands that are increasing their goodwill in this 
present analytical market are packed in the new improved 
AUTOKRAFT cigar boxes. 

Cigar Manufacturers who have not investigated the value of 
the merits and economies of the splendid and inviting package 
may obtain complete details promptly by addressing the 

AUTOKRAFT BOX CORPORATION. 



Phi la., Pa, 
Hanover, Pa. 
Cincinnati, Ohio 



York Pa 

AUTOKRAFT BOX CORPORATION Chicago, iii. 

Lima Ohio Detroit. Mich. 

A Nat ioi\ Wide Service Wheeling, W. Va. 



f\ 



A 



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s< 







mnnm 





iiiiiiimin 



PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA.. PA, 





WOODEN BOXES 

Are the Only Natural Humidor for Cigars. 



Pack your cigars in wooden boxes and preserve 
their delicate aroma, mellowness and flavor 
right up to the time they are passed over the 
counter to the customer. 

Discriminating cigar smokers prefer to select 
their favorite brand from a wooden box and it's 
good business to cater to the dealer and con- 
sumer by packing your cigars in wooden boxes. 




WHEN BUYING CIGARS 

Remember that RcBardleii of Ptict 



THE BEST CIGARS 

ARE PACTCD IN 

WOODEN BOXES 




THE TOBACCO WORLD 



Vol. 54 



MARCH 1. 1934 



No. 5 




The TOBACCO WORLD has signed the President's agreement and 
is operating under MR A Code, gladly and wholeheartedly co-operating to 
the fullest extent in the Administration's effort to promote industrial re- 
covery. 



S WE go to i)ross, there arrives a despatch 
from Washington stating that exhaustive 
hearings on revision of the existing taxes on 
to))aceo and tol)acco products will begin ^larcli 
rjth before a sub-connnittee of the House Ways and 
Means Committee. Representative Vinson, of Ken- 
lucky, who made the announcement, will serve as chair- 
nuin of the sub-committee, other members of which 
will l)e Congressman Shallenberger, of Nebraska, Mc- 
Cormack, of Massachusetts, Bacharach, of New Jersey, 
and WoodrulT, of Michigan. It is expected that about 
live days will be required for the hearings. 

J)eclaring that there is a real need for revision of 
|)resent tobacco taxes, Representative Vinson pointed 
out that while the present six-cent tax on cigarettes 
is generally believed to be of wartime origin, it was 
not imposed until after the war, being one of the taxes 
increased to make up the revenue lost by the adoption 
of prohibition. The return of legalized liquor, he be- 
lieves, is a sufficient basis for restoration of the tax 
to its pre-prohibition status or thereabouts. 

Explaining that the committee ** expects to view 
this important problem from a four-angle viewpoint — 
the grower, the consumer, the tobacco industry, and 
the Treasurv," Vinson said in a statement it was his 
personal thought "that a substantial reduction in the 
tobacco tax and thereby a lessened price of the tobacco 
products to the consumer will bring about an increased 
consumption of such products and, naturally, a sub- 
stantial increase in prices to the farmer because of the 
increased demand," 

Cj3 CS3 Ct3 

OMING as it did just three weeks to the day 
after the meeting of the manufacturer^ called 
bv the Tobacco Merchants Association of the 
United States, the announcement of this series 
nf hearings should prove of absorbing interest to 
evervone in tiie industrv. The j)ublicitv which will 
result from tiie hearings will serve more than any- 
thing else to reveal to Mr. and Mrs. Smoker the dis- 
proportionateness of the internal revenue taxes on 
tobacco and tobacco jiroducts. 

^^^B^^ ^^^^^^m ^^^^^^A 

Cj3 Cj3 CJ3 

HEY will learn, some of tiiem for the first 
time, what the numufacturers, wholesalers and 
many retailers have long been cognizant of, 
namely, that the major part of the retail price 
they pay for their cigarettes, for instance, is not for 
the tobacco, the paper, the package, the manufacturing 
costs, the sales and advertising expense, nor for all 
these items added together, but for the Government 





tax. Tell the average smoker that six cents of the 
price he pays for a pack of cigarettes goes to the Gov- 
ernment as a tax, and, unless you have previously built 
up a reputation with him for knowing what you're 
talking about, the chances are he'll suspect you of 



arbling the facts. 



Ct3 [t] Ct] 





T WILL be a surprise to the average layman 
to learn that tobacco taxes represent approxi- 
mately one-fourth of the internal revenue col- 
lections from all sources. When he under- 
stands that this can be so only because the tax is so 
great a part of the price he pays for his smoke, it is 
not too much to expect that he will comment on this 
new knowledge lo his Congressman, who, in turn, can 
patriotically advocate a reduction of the tobacco tax 
on the ground that greater sales will result from the 
consequent lower retail prices, which will be of benefit 
to the grower, the manufacturer, the wholesaler, the 
letailer and to the Government itself. For the Gov- 
ernment income will grow, not only from the increased 
sales of stamps, even though at a lower cost, but also 
from the revenues arising from the increased business 
all the wav down the line. 

• Cj3 CJ3 Cjl 

T IS very interesting to mark the trend of the 
tobacco trade in the United States. The year 
that has just closed had many doleful days for 
tobacco manufacturers, and retailers have felt 
the high wind of adversity which was intensified by an 
abnormal increase in price-cutting. The latest reports 
indicate a feeling of optimism. There is a forward 
move in connection with the Code proposal, and the re- 
moval of the discredited Prohibition Law has given 
an extraordinary impetus to the tobacco trade. There 
is one lesson which tobacconists in these countries can 
learn from the trade revival in the United States, and 
it is that a spirit of co-operation and sound leadership 
are essential features if better times are to be experi- 
enced." Those words, gentlemen, are from the Irish 
Tohaccn Trade Journal, the only publication in Ire- 
land devoted to the tobacco and allied trades. They 
arc rejirinted here because the lesson which the Irish 
trade is asked to learn from the editor's long-distance 
view of the situation in this country is the very same 
lesson which the industry in this country must learn 
and act upon: **A spirit of co-operation and sound 
leadership are essential features if better times are 
to be experienced." 

Here's hoping that the Code will be adopted soon 
after the end of the NRA conferences in Washington 
on March 8th, so that planning and action may go 
ahead, unhampered by any doubts as to what has been 
finally determined upon to be for the greatest good 
of the greatest number in the industry. 



The TOBACCO WORLD (established 1881) is published by Tobacco World Corporation; Hobart B. Hankms, President and Treasurer; 
Gerald B. Hankins, Secretary. Office, 236 Chestnut Street. Phitadelphia, Pa. Issued on the 1st and 15th of each month. Subscriptions, avail- 
able only to those engaged in the tobacco industry, $2.00 a year. 20 cents a copy; foreign, $3.50 a year. Entered as second-class mail matter, 
December 22, 1909, at the Post Office, Philadelphia, Pa., under the Act of March 3, 1879. 



Adjustment Program for Puerto Rico 



Review of Foreign Tobacco Markets 




TOBACCO adJustinoiU piograiii for Puerto 
Rico, which will mean the distribution of ap- 
l)roximately $1,750,000 in benefit payments to 
growers in 1934 and 1935, has been announced 
by the Agricultural Adjustment Administration. 
Under this program growers of cigar-filler, type 46, 
tobacco in Puerto Rico will be olTered contracts for 
reduction of the crop being harvested, and on the 
acreage to be planned next season. 

A representative of the Agricultural Adjustment 
Administration has been in Puerto Rico for the past 
several weeks studying the ]irobleni of the growers. 
The current crop is now being harvested and is ex- 
]iected to yield 25,000,000 pounds, which would increase 
the present large carry-over. As a result of this sur- 
plus condition,"Puerto* Rico cigar filler, which consti- 
tutes 15 to 20 per cent, of the cigar tobacco consumed 
in the United States, is selling about 30 per cent, be- 
low fair exchange value. Practically aU of this to- 
bacco is sold in the United States. 

The contract to be offered will require growers 
to leave unharvested all of the second and third crops 
of tobacco on their acreage this season. Growers will 
also be asked to reduce the acreage planted for the 
1934-35 crop by either 40 per cent, or 25 per cent, of 
the base acreage. If the 25 per cent, reduction is 
chosen by a grower, he will be permitted to harvest 
but one crop from the acreage grown. If the grower 
elects to reduce his acreage by 40 per cent, he may 
take a second harvest from his crop. 

The contract offers growers two choices as to 
base acreage, which mav be either the average planted 
to tobacco in the crop years 1929-30, 1930-31, 1932-33, 
and 1933-34, or may be 85 per cent, of the average 
planted in any three of those crop years. 

The contract will give the Secretary of Agricul- 



ture the privilege of requiring acreage reductions in 
1935-36 simihar to those in 1934-35. In the event this 
option is exercised, growers will receive rental and 
adjustment payments on the same basis as those re- 
ceived for 1934-35. 

Under the terms of the contract growers who par- 
ticipate will receive payments for leaving unharvested 
the second and third tobacco crops this season, at the 
rate of $10 per cuerda (1.01 acres) where the crop is 
luu'vested by "priming", or picking individual leaves 
without disturbing the stalk. Payments will be made 
at the rate of $15 per cuerda where the crop is har- 
vested bv stalk-cutting. l\nvments in the 1934-35 
])rogram will be on the basis of a rental payment of 
$30 i)er cuerda on land taken out of tobacco, in addi- 
tion to an adjustment payment equal to 30 per cent, 
of the market value of the crop grown in 1934-35. 

The payment to growers this season will be dis- 
tributed as soon as proof that the grower has de- 
stroyed his second and third crops has been submitted 
and ai)i)roved. The first payment in next year's ad- 
justment plan will be made after contracts have been 
approved and accepted. The second payment will be 
made after proof of compliance. 

If all tobacco growers in Puerto Rico participate 
in the program there would result a 15 per cent, re- 
duction in the present crop, and a 33 per cent, reduc- 
tion in the 1934-35 crop. Thus production for the 
present year would be approximately equal to con 
sumption, while the crop next season would be about 
20 per cent, below consumption, bringing about a sub- 
stantial reduction in the carryover of old tobacco. 

The tobacco adjustment program for Puerto Rico 
is the first program to be announced for insular pos- 
sessions or territories under the Agricultural Adjust- 
ment Act. 



Nearly All Burley Growers in Campaign 




ETWEEN 91) and 95 per cent, of Burley tobacco 
growers in the United States have agreed to 
curtail 1934 production under Agricidtural Ad- 
justment contracts, it was indicated by the first 
compilation of results from the sign-uj) canqjaign which 
was closed officially February 17th. The reduction as- 
sured by the contracts will limit the 1934 crop to 
approximately 250,O()0,00t) pounds, according to J. B. 
Ilutson, chief* of the Tobacco Section. (J rowers, under 
the contract, may reduce either one-third or one-lialf 
from their base. 

Total benefits, including rental and adjustment 
payments, which will be distributed to participating 
growers, w^ll approximate $15,000,000. These benefits 
are to be derived from processing taxes on tobacco of 
this type. The first rental payment of .$20 per acre on 
land taken out of ])r(><hK'tion will be made to contract- 
ing farmers as s<jon as contracts are examined and 
accepted. 

The first adjustment payment, which will be equal 
to at least 10 per cent, of the net sale value of the 1933 
crop on farms covered by contract- tailing for a 'S3% 
per cent, reduction, and at least 15 per cent, of the net 
sale value of the 1933 crop on farms covered l»y con- 
tracts calling for a 50 per cent, reduction, will be made 
about September, 1934. 



The second adjustment payment, which will be not 
less than 15 per cent, of the net sale value of the 1934 
crop under the first type of contract, and not less than 
35 per cent, of the net* sale value of the 1934 crop under 
the second type of contract, will be made after the 1934 
crop has been marketed. 

The percentages of sign-up in the various states, 
as estimated from the first tabulations of the extension 
directors, are as follows: Kentucky, 92 per cent.; 
Tennessee, 90 per cent. ; Ohio, 91 i)er cent. ; Nortli ( 'aro- 
lina, 95 per cent.; West Virginia, 50 to GO per cent.; 
Virginia, 95 per cent.; Indiana, 75 per cent.; and Mis- 
souri, 86 per cent. 

Kentucky, Tennessee and Ohio are the largest pro- 
ducers of Burley type tobacco. According to Mr. 
Ilutson, growers in these States apparently favored 
the one-half reduction plan, while growers in the other 
States appeared to favor tlie one-third reduction plan. 

The sign-up of contracts for limiting production on 
lire (urctl and dark air-cured tobacco will probably 
come to a close during the early part of March, accord- 
ing to Mr. Ilutson. The exact date will be announced 
later. The sign-up in areas producing these types of 
tobacco w^as begun at a later date than the signing of 



growers in the Burley areas. 



Th4 Tobacco World 



■^^sM ITII increases of 6.75 per cent, in volume, 17.8 
AaW P^^* ^^"^- "^ average value per hundred ])Ounds, 
and 25.8 y)er cent, in total returns to American 
shippers, the leaf tobacco trade of the United 
States with foreign countries during 1933 recovered, 
in part, the volunie and value lost to the tobacco trade 
(luring 1932. As reviewed by the Tobacco Division, 
Department of Commerce, exports of leaf tobacco dur- 
ing 1932 were 84,265,725 pounds, or 17 per cent., less 
than the average during the five years 1922-1926, and 
142,000,000 pounds, or' 25.8 per cent., less than the 
average during the five years 1927-1931. Total ex- 
ports of leaf tobacco from the United States to all 
toreii2:n countries during 1933 amounted to 438,936,121 
pounds, and the total return to American shippers 
amounted to $82,924,212 or an average of $18.89 per 
hundred pounds. Compared with others, during the 
twelve-year period of 1922-1933 inclusive, with the ex- 
ception of 1932, the year 1933 was a lean one in both 
total quantity and total value; however, the downward 
trend was broken. 

The trend in average price per hundred pounds 
has been decidedly downward since 1922. The average 
price that year was $33.15 per hundred pounds and 
the average piice during the five years 1922-1926 was 
$30.47 per hundred pounds. During the next five years, 
1927-1932, the average price was $25.19 per hundred 
pounds, the low year being that of 1931 when the 
average was $21.12. The 1932 average was $5.09 below 
1931 and registered $16.03. In the ten years following 
1922, the average price fell from $33.15 to $16.03, a 
decrease of $17.12 per hundred pounds, or nearly 52 
per cent. 

Although the volume of leaf tobacco exported from 
the United States followed an upward trend from 1922 
through 1930, the total return to American shippers 
in 1930 was approximately a million dollars less than 
the return in 11^22, in keeping with the downward trend 
in average price. During 1931, total exports were 
55,231,793 pounds below 1930, and shippers received 
$35,029,628 less in return. 

The value of all leaf tobacco exported during 1922 
was $146,489,101 and the value in 1930 was $145,609,- 
209. The peak year of the period under review was 
1924, when the value registered $164,129,745. The low 
average in 1931 and the low return of $110,779,581 that 
vear reduced greatly the live-year average of 1927- 

1931, inclusive, when compared with the previous five- 
vear period. The extremely low average of $1().03 pt'i 
liundred pounds for all leaf tobacco exported during 

1932, coupled with the low volume of 411,159,483 
])Ounds, registered a return of $65,901,574, or approxi- 
mately 45 per cent, less than that of the return in 1922, 
and approximately 40 per cent, less than that of the 
peak year 1924. 

As before mentioned, 1933 exports of leaf tobacco 
recovered in volume exported, average price per hun 
dred pounds, and in total return to American shippers. 
At this time, it is impossible to forecast what 1934 
will bring forth. It may be considered, however, that 
foreign buyers have been purchasing to cover im- 
mediate needs only and, at the same time, foreign 
manufacturers have exhausted not only their own stor- 
age stocks of American tobacco but the normal stocks 
uf American tobacco held usually by importers and 
dealers, in most markets. 

March I, 1934 



(lERMANY — The market for American tobacco in 
Germany during the calendar year 1933 was generally 
({uiet, according to a report from American Consul 
W. A. Leonard, made public by the Tobacco Division, 
Department of Commerce. Although the demand im- 
proved during the last few months of the year, transac- 
tions did not reach the level of 1932. 

American tobacco imports into Bremen during 
1933, according to preliminary statistics, amounted to 
15,322,600 pounds, as compared with 19,292,000 pounds 
during the preceding year of 1932, thus showing a de- 
crease of 3,969,400 pounds or about 20 per cent. The 
decrease in the imports during the early part of the 
year was largely accounted for by a shortage of suit- 
able grades of tobacco available for Bremen. Later 
in the year, exchange difficulties handicapped the im- 
portation of tobaccos into Bremen, and relatively 
higher prices for the American product brought about 
some substitution of other grades for American 
tobacco. 

The total imports of tobacco into Bremen from 
all parts of the world during the calendar year 1933 
increased by approximately one-third when compared 
with the immediate preceding year of 1932. Imports 
during 1933 totaled 67,728,878 pounds, as compared 
with 51,125,350 pounds during 1932. The imports of 
American tobacco constituted approximately 23 per 
cent, of the total tobacco imported via Bremen from 
i\\\ parts of the world during the year 1933, as com- 
pared with about 40 per cent, in the immediately pre- 
ceding year. 

The market for bright Virginia tobacco was gen- 
erally quiet during the first eight months of the year, 
due to a premature exhaustion of the 1931 and 1932 
crops. However, the market became active after the 
arrivals of the 1933 crop grades during September and 
good sales are reported to have been effected during 
the latter part of the year. Prices of the 1933 crop 
showed an upward trend and increased by approxi- 
mately 50 per cent. 

Transactions in the market for dark Virginia to- 
bacco during 1933 are reported to have been smaller 
than in 1932, due to the 1932 crop providing only small 
quantities of wrapper and spinner grades suitable for 
European purposes. The shipments of suitable grades 
for the Bremen market of dark Virginia tobacco which 
arrived during the year found ready buyers. As is 
well known, certain types and grades of American to- 
bacco are considered particularly suitable for the 
European trade. The market for dark Kentucky 
tobacco was quiet during the greater part of 1933, due 
to only small shipments being made during that time. 
Business improved somewhat when the 1932 crop ar- 
rived, but this crop supplied cmly a small quantity of 
leaf grades suitable for German purposes, the ship- 
ments of which were readily taken up on arrival. 

Burley, ^Maryland and Ohio tobaccos are reported 
to have shown a decline in the market during 1933. 
Importers state that only small sales have been effected 
to German and other European manufacturers. Seed- 
leaf tobacco, which has not been otTered in the Bremen 
market during recent years, was again imported in 
small quantities. 

CUBA— In 1933, Cuba exported 29,504,143 pounds 
uf leaf tobacco, as compared to 36,355,658 pounds in 
1932, according to a report from American Consul Lee 



E. Blolim, made public by the Tobacco Division, De- 
partment of Commerce. Other exports Avere as fol- 
lows: Cii^ars 36,831,551 pieces (28,563,695 in 1932), 
cigarettes 30,792,038 pieces (41,388,248), and smoking 
tobacco 122,220 pounds (152,235). The total value of 
all tobacco exported in 1933 was $13,395,306, compared 
with $12,926,270 in 1932. 

The United Kingdom and Spain were by far the 
most important destinations of cigars exported from 
Cuba, having taken together about 78 per cent, of the 
total cigar exports, followed by France, the Ignited 
States, and others. 

Final estimates issued by the Cuban Tobacco Com- 
mission (Comision Xacional de Propaganda y 
Defensa del Tabaco Habano), place 1933 production of 
tobacco in Cuba at 36,352,032 })ounds, or 272,772 bales, 
against 34,692,957 pounds, or 254,154 bales, in 1932. 
Tiiis is an increase for 1933 of 18.618 bales or 7.3 per 
cent, over 1932. The 1933 area planted was 45,474 
hectares, comi)ared with 37,773 in 1932. 

Fair prices were received, until recently, for lower 
resagoes and bancos of the Partido crop. Sales of 
octavos and third capaduras of the Kemedios crop have 
been ranging from ten cents to twenty cents per pound. 
Lower classes of Remedios are selling at nuich higher 
prices than last year. Stennned and unstemmed filler 
leaf tobacco of the Santa Clara crop are otTered for 
export around twenty-live cents and forty-five cents 
])er j)ound respectively. Lower grades {»f tobacco from 
the various Vuelta Abajo sections have been sold at 
very good prices. Good tobacco leaf has not been 
moving as well as the lower grades in all varieties as 
the market cannot now absorb the higher priced weed. 

Production for 1934 will, from present indica- 
tions, be smaller than for many years in all five dis- 
tricts, including Remedios. Too much rain fell in the 
autumn to permit the planters to pre})are and seed 
the ground, and although the crop may still be of good 
quality in some sections, it cannot be large. Farmers 
in all these areas, including the Partido, have been 
gratlually reducing their acreage as a result of the 
smaller demand from year to year and lack of financial 
means to seed even the normal acreage. In 1!KU, it is 
stated, planters will be obliged to depend more on their 
o\m financial resources, foreign capital, employed to 
a large extent in previous years, having been discour- 
aged by internal disturbances in the island. In addi- 
tion, efforts are being made to raise wages in general 
in all Cuban industries, supporting the program of the 
labor svndicates. 

The labor situation in the to])acco industry con- 
tinues to be highly involved. The struggle is between 
imions and not between unions and the cigar com- 
l)anies. The unions, through the dock workers, are 
making use of the boyeoit as a weapon. The govern- 
ment has not yet taken the necessary measures to 
settle the controversy. In the meantime, the exjjort 
maiket situation is demoralized and shii)ments of 
cigars as well as of leaf tobacco can only In- made 
through permission of the syndicate of harbtn- workers. 
Leaf tobacco, both stemmed and unstemmed, may still 
be shipped, though boycotts have also been threatened 
against any dealers not employing union men. 

Tobacco circles in Habana show much pessimism 
regarding the tobacco industry in general. I\e1ailers 
declare that they are making very few sah'^ in th(! 
doiriestic market, warehousemen comi)laiii that the 
moveijieiii of leaf tobacco has never been so slow, cigar 
manufacturers contend that they have been obliged to 
curtail production because of the difficulty encountered 



in loading cargo for export, and cigarette manufac- 
turers show a steady drop in sales since January 1, 
1932. 

IUUjGARIA — Preliminary estimates show that 
total eximrts of leaf tobacco from Bulgaria at the end 
of 1933 will attain approximately 20,100,000 kilograms, 
valued at over 1,055,000,000 leva, as compared with 
20,492,000 kilograms, valued at 1,078,049,000 leva in 
1JI32, and 24,587,000 kilograms valued at 2,579,730 leva 
in 1931. American Consul Jolm McArdle states, in a 
report reviewed by the Tobacco Division, Department 
of Connnerce, that figures show^ 1933 exports to be 
slightly lower both in quantity and value than those 
of 1932, and considerably below those of 1931. Normal 
exports usually amounted to about 25,000,000 kilo- 
grams, valued at aj)i)roximately 3,000,000,000 leva. Ex- 
})orts in 1933 and 1932, therefore, attain but approxi- 
mately one-third of the value of exports in normal 
vears. 

The 1933 tobacco crop of Bulgaria is estimated at 
approximatelv 22,900,000 kilograms, considerablv 
above that of*1932, 17,200,437 kilograms. It was, how*- 
ever, much below the crops of normal years, which 
usually totaled between 25,000,000 and 30*000,000 kilo- 
grams. 

Planting and the gathering of the leaves were 
delayed about a month, because of cold weather. 
Climatic conditions improved later, and drying was 
completed under favorable circumstances, with the ex- 
ception of the third picking which suffered in certain 
regions from the autumn rains. The crop was below 
the expected quantity of 25,000,000 kilograms, the bet- 
ter grades which are gathered on the third picking 
have been mainlv affected. 

Purchase prices in the second half of 1933 aver- 
aged somewhat over 10 per cent, above those prevail- 
ing in the first half of the year, ranging from over 10 
leva per kilogram for the low grades to approximately 
iifty leva per kilogram for the best grades. The greater 
l)art of the 1932 cro}), however, was sold at an average 
of twentv to thirty leva per kiloLrram. 

(JRHAT inUTAIN— Figures given in the Annual 
Rej)ort of the i^ritish Customs and Fxcise for the liscal 
yeai- ending March 31, 1!K]3, reviewed by American 
Trade Commissioner .lames Somerville, Jr., in a re- 
]*oit to the Tobacco Division, Department of Com- 
merce, show a gradual increase, over a ten-year ])eriod, 
in the (plant ities of Empire tobaccos consumed, that is, 
from 9,3f)9,236 pounds in 1923-24 to 32,499,059 pounds 
in 1932-33. The largest single advance was in the last 
year of this period, which showed an increase (»1 4,619,- 
7Ch) pounds. This increase was unexpectedly large, 
and is explained as having been *' stimulated" by the 
1931 increase in duty, which, for the most part, the 
tobacco trade did not ])ass on to consumers in in- 
creased prices. The chief cause of the advance of 
Ismpire tobaccos was the advantage which they have 
enjoyed of a preferential duty. 

The (plant ity of foieigii tobacco retained for con- 
>inni)tion in 1932-33 was 11s,Ol>7,457 pounds, which 
compares with a figure of 119,440,834 for the year 
1923-24. The increase which has taken iilace in the 
total consumption of tobacco during this period from 
128,810,070 pounds in 1923-24 to 150,526,516 in 1932-33, 
has been entirely to the advantage of Empire tobacco. 

It is noted that the l^oard of Trade import re- 
turns for the eleven months ending Xoveniber 3oth 
suggest that a steady advance in the relative im- 
portance of Empire tobacco im|»orls has been checked 

(Continued on Page 10) 

Tht Tobacco World 



The Effects of Cigarette Smoking 

Upon the Blood Sugar 

By Profs. HOWARD W. HAGGARD and LEON A. GREENBERG 
Laboratory of Applied Physiology, Yale Univsrsity 




HE gratilication derived from smoking has 
always been rather a mystery. Exactly what 
elements in the smoke exert the x^leasurable 
physiological effects has never been deter- 
mined, nor precisely what these effects are. Numerous 
theories have been advanced. But these theories 
merely show how little is known. 

Tobacco ditTers from other leafy vegetables in its 
characteristic alkaloid. That alkaloid, nicotine, is 
named for Jean Nicot, who introduced tobacco chew- 
ing to Catherine de Medici. Nicotine is a ])owerful 
<lrug. It paralyzes nerve ganglia when ap])lied di- 
rectly to them. * But it has not been shown — and it is 
on the whole imi)robable — that this i)roperty of nico- 
tine accounts for the elTects of to])acco smoking. 

Chemists have pointed to the carbon monoxide in 
tohacco smoke and have suggested that it is a cause of 
the ill eirects, if not the pleasure, of smoking. But in 
fact a heav>' smoker accunmlates less carbon monoxide 
than does the non-smoker who takes a walk on Fifth 
Avenue, New York, during the hours of heavy auto- 
mobile traffic. 

Other products of combustion, notably pyridine, 
have likewise been suggested; but they occur, not only 
in tobacco smoke, but also in the smoke from othei 
vegetable matter, such as corn silk, maple leaves and 
colTee beans. That these substances do not contribute 
ai>i)reciably to the gratification of smoking is con- 
clusively demonstrated by the fact that few smokers 
adhere to the juvenile substitutes for tobacco. Such 
substitutes are cheap, yet tobacco maintains its jxipu- 
laritv. AVhy tobacco! 

The answer we believe is nicotine. Smoking, we 
find, produces a definite, although temporary, increase 
in the concentration of blood sugar, and a correspontl- 
ing increase in the rate of sugar combustion in the 
body. These elTects are certainly due to the nicotine 
of the tobacco and they arise from the action of this 
alkaloid upon the adrenal glands. There can ])e little 
doubt that this is the source of at least a considerable 
part of the gratification from smoking. 

Our observation of the hyperglycemia from smok- 
ing occurred by chance. We had been investigating 
the (piestion of the optimum mealtime interval — how 
often should children, college students and industrial 
workers be fed. To this end we determined the re- 
rpiratory quotients at hourly intervals during the day, 
on several hundred subjects. In a number of cases 
the concentration of sugar in the arterial blood was 
('omi)ared with the respiratory quotient. 

On some days the subjects fasted; on others they 
ate from one to five meals, variously space<l. As \yas 
to be expected, the respiratory (luotients of the fasting 
subjects fell to values between .78 and .82 and the 
hlood sugar to .08 and .10 per cent. In the subjects 
who ate, both the respiratory quotient and the blood 
sugar rose after the meal; but within two to four 
hours, if another meal was not taken, it fell again to 

March i, 1934 



the fasting level. AVhen this fasting level was reached, 
it was maintained in a great majority of the subjects 
with little change for many hours. A few, however, 
exhil)ited sudden fluctuations of considerable magni- 
tude in both the respiratory quotient and blood sugar. 
Such fluctuations never occurred among the chil- 
dren. All the adults were free from emotional dis- 
turbances which might explain them. A search for 
the cause of the divergent values suggested that it was 
associated with smoking. 

The respiratory quotients and blood sugars be- 
fore and after smoking were then studied in a number 
of subjects. The results showed that when the re- 
si)irat()ry quotient is above .85 and the blood sugar cor- 
respondingly above .13 per cent., the smoking of a 
cigarette has no appreciable influence upon either. 
When, however, the respiratory quotient and blood 
sugar have fallen below these values, and especially 
when the fasting level has been reached, the smoking 
of a cigarette is followed by a rise in both. Values are 
attained within fifteen minutes as high as .85 or .90 
for the respiratory quotient and .12 or .14 per cent, 
for the sugar. During the next thirty nunutes the 
values fall gradually to, or slightly below, those ob- 
served before the cigarette was smoked. 

It is a well-known fact that injection of nicotine 
into animals is followed by a temporary rise in blood 
sugar. But so far as we can find no one has previously 
reported a similar rise in man resulting from the nico- 
tine of tobacco smoke. 

From animal experimentation it is well established 
that it is the action of nicotine upon the adrenal glands 
which leads to the hy]ierglycemia. The rate of dis- 
charge of adrenalin is increased; and the liberated 
adrenalin exerts its characteristic gycolytic action. 
The glycogen stored in the liver and muscles is con- 
verted into sugar. In consequence the concentration 
of sugar in the blood is increased. Secondary to the 
rise in sugar the combustion of carbohydrate is in- 
creased and can be observed in the increase in the 
value of the respiratory quotient. But, as already 
stated, these metabolic effects do not result from smok- 
ing when the blood sugar is at a concentration above 
.13 i)er cent., as it is for two or three hours following 
a meal. 

The acceleration of sugar metabolism thus demon- 
st rated affords a possible explanation for the fact that 
smoking diminishes hunger in many users of tobacco. 
Hummer appears from our observations and those of 
other investigators to arise within a definite time after 
the blood sugar falls to the fasting level. Tobacco 
smoking, by inducing a hyperglycemia, temporardy 
relieves these conditions. 

Note. — The foregoing is reprinted, because of its 
interest to the trade, from the February 16th issue of 
Science, the official journal for American scientific an- 
nouncements. 




TOBACCO PRICES STRONGER 

UV] prices of nearly all types of tobacco showed 
considerable strengthening during Janufiry. In 
the case of Bnrley, tlie most important type 
marketed at this season, the prices declined 
untd about the middh> of the month, but subsequently 
advanced sufiiciently so that the average for the entire 
belt, based u])on weekly reports of sales supervisors at 
auction floor markets, during the week ended February 
loth was around 11.5 cents per pound, which was nearly 
back to the level of the ojiening week of the season. 
Reports of the Bureau of Agricultural Economics grad- 
ing service iiidicate that prices on a grade ])asis have 
advanced more than market averages, as some decline 
appears to have taken ])lace in the ipiality of tobacco 
offered on the market. The avei-ane price for all sales 
in Kentucky during January of this year was 10.5 cents 
l)er pound," compared with 12.0 cents for January last 
year, and 8.6 cents for January, 1932, according to 
State reports. 

Dark air-cured tobacco and the so-called AVestern 
fire-cured ty])es showed the greatest increases in price 
this vear, according to State reports. During January 
of tliis year. Green River (Type 3G) tobacco averaged 
10.1 cents per pound, comi)ared wilii :>.4 cents last Jan- 
uarv and 3.3 cents two years ago. One-sucker (Type 
35) 'tobacco averaged 6.7 cents per i)ound, compared 
with 5.0 cents last January and 3.1 cents two years ago; 
Virginia sun-cured (Type 37) averaged 8.4 cents dur- 
inii' January, compared with 7.0 cents last January and 
5.6 cents two years ago. Prices for the latter type have 
advanced greatly during the last two weeks and are 
now reported to be averaging above 12.0 cents per 

])ound. 

Among the fire-cured t^-pes, KentTickT sales during 
Januarv this vear averaged 9.8 cents per pound in the 
Clarksville-Hopkinsville district (Type 22), 5.4 cents in 
the Paducah district (Tyjje 23), and 5.4 cents in the 
Henderson district (Type 24). These prices are from 
32 per cent, to 196 per cent, higher than the correspond- 
ini? prices for last season and are from 150 per cent, to 
245 per cent, higher than those for the 1931-32 season. 
• Onlv the Virginia fire-cured type, of which a large per- 
centage of tiie 1933 crop was damaged by storm, has 
had prices this year below those of last year. The aver- 
age for January, 1934, was 6.9 cents i)er pound, com- 
pared with 8.9 cents a year earlier and 4.7 cents in 1932. 
Prices for flue-cured tobacco during Jaimary de- 
clined seasonally and averaged 14.4 cents i^er pound 
for the month, compared with 17.2 cents for December, 
1933, according to State reports. The January aveiage 
thi^ vear compares with 7.3 cents for January last year 
and 5.9 cents for January, 1932. Apiiroxinuitely 98 ])er 
cent, of the 1933 flue-cured crop is reported to have 
been sold prior to P^ebruary 1st, with n crop average 
of around 15.25 cents per pound. 

The Agricultural Adjustment Administ rat ion 
brought additional influences to bear upon tobacco 
prices during January. Three new marketing agree- 
ments were negotiated during the month, applying to 
the fire-cured and dark air-cured types of tobacco, thus 
bringing under marketing agreements all the major 
T'nited States tobacco types, except cigar leaf. Prelim- 
inary steps have been taken to work out agreements 
for the cigar types. Under the agreements covering 
the fire-cured and dark air-cured types, as under the 
flue-cured and Burley agreements, each of the leading 
domestic buyers agreed to make purchases at least 
equal to the quantify which it manufactured last year, 



at prices not less than specified minimum averages. In 
addition, one of the agreements provides that no to- 
bacco of any of the fire-cured or Green River types 
shall be purchased on an auction floor market below a 
lixed minimum price. Manufacturers of tobacco by- 
])roducts have contracted to take all such tobacco for 
which no price bid is received on the market, up to a 
maximum of 17,000,000 pounds, at an agreed price to 
the grower. This tobacco is to be used only in the man- 
ufacture of nicotine, fertilizer or tobacco extract, thus 
removing it from ordinary commercial channels. 

The use of tobacco in the manufacture of tobacco 
products, which is indicative of consumption, was 
slightly larger during December, 1933, than during De- 
cember, 1932, according to reports of the Conunissioner 
of Internal Revenue. The number of tax stamps issued 
for use on manufactured tobacco (smoking and chewing 
cond)ined), was 8 per cent, smaller than in Decend)er, 
1932, ami the number issued for snuff was 24 per cent, 
smaller. However, in the aggregate, these declines 
were slightly more than offset by a 7 per cent, increase 
in the number of stamps issued for cigarettes and a 10 
])er cent, increase for cigars. 

Exports of leaf tobacco from the United States in 
December, which totaled 60,800,000 pounds, were more 
than double the exports of Deceml)er, 1932, and the 
largest for any corresponding month since 1929. Ex- 
cejit for October, 1933, this was the second largest for 
any month during the last four years. Most of the in- 
creased exports took place in flue-cured tobacco, for 
which the quantity exported was 53,300,000 pounds, 
compared with 22*500,000 pounds in December, 1932, 
and a five-year average for December of 48,000,000 
pounds. However, the December exports of all other 
types of tobacco, except Virginia fire-cured, showed in- 
creases over December, 1932. 




"NEWSNAGLE AND BUDD'S STOOPREEL" 

HE RADIO PREMIERE of **rolonel Stoop- 
nagle and Budd's Xewsreel of the Air," the 
ColonePs weird discovery of **naf" letters, 
and the incomparable songs of Connie Boswell 
were highlights of the Camel Caravan, featuring Glen 
(Jrav's Casa Loma Orchestra over the WABC-Colum- 
bia network on Tuesday, February 20, and Thursday, 
Februarv 22, from 10 to 10:30 P. M., Eastern Standard 

I ime. 

The (^olonePs *'naf" letters were introduced on 
Tuesday's program. "Naf " (n-a-f) letters are the re- 
viMse of ''fan" (f-a-n) letters, and the Colonel is de- 
termined to write regularly to those of his listeners 
whom he meets on the street, lie broadcast his first 
sheaf of "naf " letters under strong police guard. On 
the same i)rogram Connie Boswell sang "On the Wrong 
Side of the Road" and *'I Just Couldn't Take It, 
Babv." Kenny Sargent sang "Under a IManket of 
Blue'" and the Casa Loma Band played "I Never 
Knew" and "Mr. Rhythm Man." 

On Thursday came the world premiere of "Xews- 
naule and Budd's Stoopreel of the Air," thrilling 
dramatizations of great events that will never occur 
and little known happenings that don't nuike much dif- 
ferenci' anvwav. Connie Boswell 's warm Southern 
voice was heard in "I Had to Change the Words" and 
"Without That Certain Thing," while the orchestra 
featured "Temptation," "I Got the Jitters," "Girl 
Friend," and **01d Man River." 

Th4 Tobacco World 




Those penciled scrawls 

are a sign of jangled nerves 




If you're the stolid, phlegmatic sort of person 
who doesn't feel things very deeply, you'll 
probably never have to worry about nerves. 
But if you're high-strung, alive, sensitive, 
watch out. 

See whether you scribble things on bits of 
paper, bite your nails, jump at unexpected 
noises — they're signs oi jangled nerves. 

So be careful. Get enough sleep- 
fresh air — recreation. And make 
Camels your smoke. 

For Camel's costlier tobaccos never 
jangle your nerves — no matter how 
steadily you smoke. 

COSTLIER TOBACCOS 

Camels are made from finer, MORE EXPENSIVE 
TOBACCOS than any other popular brand of cigarettes ! 








Here is a series of numbers. Two 
numbers in this series contain the 
same digits . . . but not in the same 
order. See how fast you can pick 
out these two. Average time is one 
minute. 

Frank J. Marshall {Camel smoker), chesi 

champion, picked the two numbers 

in thirty seconds. 



Copyrlglit. 1 KiL 11. J. lU.viiulUs Tobacco Loiiipnii/ 




SMOKE AS MANY AS YOU WANT... 
THEY NEVER GET ON YOUR NERVES! 



•.»■» I^ll CAMEL CARAVAN featuring GUn Gray-. CASA LOMA Orch..tra and oth,r H^adlinyjEv.ry Tu^, day and 
TUNE INI Thur^ayatl9P.M.,E.S.T.~»P.M..C.S.T.-aP.M.,M.S.T.-7P.M.,P.S.T..ov.r WABCColu^b.a Network 



March i, 1934 



9 



All Tobacco Products Increase in January 




HE following comparative data of tax-paid 
products, indicated by the monthly sales of 
stamps, are issuetl by the Bureau (Figures 
for January, IIK'U, are subject to revision un- 



til published in the annual report): 



Prnducts 

Cigars (large) : 

Class A No. 

Class B Xo. 

Class C Xo. 

Class D Xo. 

Class E Xo. 

Total 

Cigars (small) ....Xo. 
Cigarettes (large) .Xo. 
Cigarettes (small) Xo. 

Snuft", mf d Lbs. 

Tobacco, mfd Lbs. 



lOSi 1933 

— January — 



3U0,24<),320 

2,447,133 

32,I)():),r)()8 

l,r)()l,S23 

127,1)17 



256,560,730 

2,008,187 

35,431,358 

2,309,301 

330,630 



337,291,761 296,640,206 



20,343,507 

8,000,050 

11,483,341,893 

3,234,989 

27,611,491 



17,497,320 

253,700 

8,(522,222,367 

3,033,44() 

24,752,091 



Tax-paid products from Puerto Kico (not included 

in above statement) Avere as follows: 

— January — 
Products 1934 1933 

Cigars (large) : 

Class A Xo. 2,517,830 2,665,650 

Class B Xo. 2,500 17,000 

Class C Xo. 49,500 9,000 



Total 



2,569,830 



2,691,650 



Cigars (small) ....Xo. 
Cigarettes (large) .Xo. 
Cigarettes (small) .Xo. 



110,000 
300,666 



20,000 
200,000 



Tax-paid products from the Philippines (not in- 
cluded in above statement) were as foHows: 

— January — 

Products 
Cigars (large) : 

Class A Xo. 

Class B Xo. 

Class C Xo. 

Class D Xo. 

Class E Xo. 



Total 



1934 

19,111,955 

24,420 

20,186 

5(K) 

20 

19,157,081 



1933 

8,777,655 

63,797 

16,338 

526 

61 



Cigarettes (large) .Xo. 
Cigarettes (small) .Xo. 
Tobacco mfd Lbs. 



• ■ • • 



121,370 



8,858,377 

312 

431,080 

20 



Comparative Statement of Internal Revenue Collec- 
tions for the Month of January 



Sources of revenue 1934 

Cigars $844,527.26 

Cigarettes 34,508,175.07 

Snuff 582,297.99 

Tobacco, chewing and 

smoking 4,970,241.49 

Cigarette papers and 

tubes 68,969,77 

Miscellaneous, r e 1 ating 

to tobacco : . . 373.20 



1933 
$756,431.49 
26,087,481.23 
546,020.32 

4,488,877.72 

81,611.70 

75.94 



Withdrawals for Previous Januaries. 



1920 663,634,243 

1!)21 462,798,039 

1922 443,260,802 

1923 559,183,38() 

1924 504,023,80!) 

1925 474,803,054 

1926 433,672,942 



1927 466,078,254 

1928 413,531,675 

1929 427,715,807 

1930 418,900,080 

1931 362,939,318 

1932 342,923,509 



Processing Tax Returns 

Detail of collections from processing and related 
taxes proclaimed by the Secretary of Agriculture un- 
der aiithoritv of the Agricultural Adjustment Act 
(Public— Xo.* 10— 73d Conufress), approved May 12, 
1933: 

Total 
from July 1, 
Month of 1933 (Fiscal 
Commodity January, 1934 year 1934} 

Tobacco (tax etfective Oc- 
tober 1, 1933) 

Processing tax .$2,485,271.01 $5,428,913.72 

I m port com])ensating 

taxes 17,747.57 77,710.36 

Floor tax, other than 

retail dealers 66,303.87 1,786,578.03 

Floor tax, retail dealers 11,076.34 234,070.47 



Total, tobacco $2,580,398.79 $7,527,272.58 



UNITED PAYS $6,000,000 FOR WHELAN CO. 

Assets of the Whelan Drug Co., subsidiary of the 
United Cigar Stores Co., and trading under the name 
of Retail Chemists Corp., wei'e recently sold to the 
United Cigar Stores Corp. of Delaware for $6,000,000. 
field Corp. was rejected aas inadeciuate. 

The purchase was made ])y the Irving Trust Co., 
as trustee in bankrui)tcy for the United Cigar Stores 
Co. An ojijiosing bid of $5,179,000 made by the Bran- 
lield Cori)oration was rejected as inadequate. 

Andred Christ ianson, an official of the receivership 
department of the Irving Trust Co., explained that 
the oifer of the United was equivalent to a cash bid 
and would mean a return of a 50 per cent, dividend 
to the creditors of the KiMail Chemists Corp. 

IMPERIAL TOBACCO OF CANADA REPORTS 

The Imjierial Tobacco Co., of Canada, Ltd., re- 
ports for 1933 net profit of $5,670,176 after charges 
and taxes, equal after 6 per cent, dividend on the pre- 
ferred, to fifty-five cents a share on 9,451,032 shares of 
common stock. This conqiares with $5,471,175, or fifty- 
tliree cents a common share in 1932. Tliis does not 
include the j)roj)ortion of the company's undivided 
profits of su))sidiary and associated conq)anies. 



10 



ZIFFERBLATT ON MIDWEST TRIP 

George Stocking, of Arango y Arango, w^as in 
town last week and reported business on the Don 
Sebastian line increasing steadily and beyond their 
expectations. Mr. Stocking is leaving this week for 
Florida where he will visit factory headquarters in 
Tampa, and laugh at us poor mortals trudging through 
the ** beautiful" snow up north. 

The Tobacco World 




THE HEIGHT OF GOOD TASTE 

ofu/ ^ €ia€irette4 too — 3^/e id St>eiy>Uu^ 

ALWAYS tAe &ifie6t SoSacco cmdOWiXtJie (3mter .^£ea4^ 



March i, 1934 



n 



News From Congress 




F£DEI 



Departments 




XTENSION to small industries of the financial 
aid of the Reconstruction Finance Corporation 
is contemplated in a bill introduced in Consjress 
by Senator Reynolds of North Carolina. Under 
this measure, credit would be made available to indi- 
viduals and business concerns engaged in commercial, 
manufacturing or industrial enterprises upon the same 
terms and conditions as are applicable to loans made 
by the corporation to financial institutions. 

The Federal Reserve Council is said to have given 
approval to the creation of a system of intermediate 
credit banks for the granting of credit of the character 
favored bv the North Carolina Senator, but through a 
different method of approach to the problem. 

Chairman Jesse H. Jones of the Reconstruction 
Finance Corporation is not particularly friendly to- 
ward turning that organization into a direct lending 
a"-encv, preferring to have credit provided through pri- 
vately operated agencies. The intermediate credit 
bank'plan, it is believed, would satisfactordy meet the 
situation. 

Ct3 Ct3 Ct3 

ilHE REPORT of the House Ways and Means 
Committee on the new tax bill indicated that 
the Treasury Department anticipates a 100 per 
cent, improvement in business by June 30, 1935. 
Total tax receipts from all sources during the fiscal 
vear ended June 30th last, it was sho^v^l, amounted to 
i2 079,696,000. For the current fiscal year, the com- 
mittee reported, the Treasury anticipates a revenue ot 
$3,259,938,000, and for the fiscal year 1935 tax receipts 
are placed at $3,974,665,000, or practically double those 

of 1933. «- .. • i. J 4. 

The figures for 1934 and 193o, it was pointed out, 
do not take into account the additional revenue to be 
raised bv the new tax measure, which is placed at 
$258,000,000 a year. 

CS3 Ct3 CjJ 

ESPITE the refusal of the House to consider 
the adoption of a general sales tax, proponents 
of the plan are preparing to bring the matt^er 
up when the measure reaches the floor of the 
Senate, if opportunity offers. A tax of 2V2 per cent 
to applv to all manufactured commodities except food 
and clothing, has been proposed. It is contended that 
some $400,000,000 a year could be raised m this way, 
permitting the repeal of the so-called nuisance taxes 
now in effect. 
ijf 







cVBOR provisions of applicable codes are to be 
conspicuously posted in establishments of all 
employers operating under approved agree- 
ments, under regulations issued last month by 
Recovery Administrator Hugh S. Johnson. Failure to 
complv with the posting requirements will be punish- 
able by a fine not to exceed $500 or imprisonment for 
not more than six months, or both. 

The regulations, issued under the authority ot an 
executive order signed by President Roosevelt, require 
all cmplovers to register'with their code authorities the 
number and locations of the establishments or separate 
units within thirty days. 

Copies of the labor provisions of the appropriate 
code, carrving detailed instructions for the filing of 
complaints of violations, will be furnished employers 
by their code authorities. 

Cj3 Ctj Ct3 

LIMINATION on January 1 next of the two- 
cent tax on bank checks is provided for in the 
revenue bill now pending in the Senate. Under 
existing law, this tax, from which about 
$38,000,000 was secured last year, would have remained 
in effect until July 1, 1935. ^ 

The bill also provides for continuation ot the pres- 
ent three-cent rate of postage on intercity first class 
mail which otherwise would have automatically ex- 
pired on Julv 1st next, but vests in the President 
authoritv to order a return to the two-cent rate should 
the condition of the Treasury warrant such action. 

The measure as passed by the House of Represent- 
atives provides for the return of second class rates of 
l)ostage to the level in effect prior to the adoption of 
the Revenue Act of 1932. 

CS3 Ct) Ct3 

CCEPTANCE of recovery codes does not serve 
to deprive business men of any of their rights 
under the law, nor does failure to assent de- 
prive them of anv of the rights and remedies 
(,r the code itself other than the privilege of filing com- 
plaints with administrative agencies, it is held by Don- 
ald R. Richberg, general counsel of the National Re- 
covery Administration, in an opinion submitted to and 
approVed bv Administrator Hugh S. Johnson. 

**It is iiot the intent or purpose," Richberg held, 
*Hhat any member of the industry assenting to the 

(Continued on page 15) 

Tk4 Tobacco World 




B AYUK BULLETIN 




WE DO OUR PART 



VOLl ME II. 



MARCH 1, 1934 



NUMBER 3 



PHULOFAX 

(The Retailer's Friend) 



SAYS 



MEMOIRS OF ALEX SMART 




"crew" 



Super 'Salesman Shows Up 
Sales Letter Writers 



next trip 



Working in a 
one salesman got 142 in- 
troductory orders . . . 
another salesman got 106 
introductory orders. The 
fellow who got 142, se- 
cured 39 duplicate orders 
. . the salesman who got 
IOC initial orders, obtained 69 dupli- 
cate oKlors next trip. Which salesman 
■oiacal the product? Which salesman 
Hold the product? Which is the best 
salesiiuin? — — 

John Byder and John Feeney were 
"talkinK" after the Manufacturers' 
Salesmen's banquet. John Byder said, 
"There's only two real cigar salesmen 
in this whole outfit — that's me, John 
Byder and you, John Feeney." John 
Feeney said, "You're wrong — there's 
three Veal salesmen — you, John Byder 
and John Feeney and John Feeney." 
— o— 

If 1000 cigar salesmen each made 
just one new smoker, in a year's time 
a minnnum of 1,000,000 more cigars 
would 1)0 smoked . . . don't knock any 
tobacco product but BOOST CIGARS I 

C. R. A. writes in: "We are told 
that there are going to be more auto- 
mobiles sold this year ... if more 
automobiles, why not more cigars and 
why not more Class C cigars?" All 
right, why not? There will be, if we 
folks in the cigar business go out 
after more cigar buainess like the 
automobile fellows go out after more 
automobile sales. Yes, sir, it's up to 

L. K. D., a distributor, writes: "All 
I of my salesmen start out from jobbing 
housi- each morning and while we 
have a regular sales meeting every 
.Saturday, we very frequently have 
from r» to 10 minutes meeting two or 
threr times during the week on im- 
portant subjects that are better dis- 
cussed daily than by waiting until end 
I of week." Fine idea, L. K. D. 



Wht n we folks in the cigar business 
talk about the "cigar industry," w^hat 
or whom are we talking about? What 
or who is the "cigar industry"? Aren't 
I you anfi I and everyone in the cigar 
busin« .ss the real sum and total of 
what makes up the "Cigar Industry"? 
Therefore, when we boost the "cigar 
industry," we boost ourselves! En- 
dorse the C. B. A. NOW! 

Competition can be fierce but com- 
petition must be fair! If you can beat 
jthe other fellow, do it with clean 
|hands— and clean thoughts. 

I Mr. Salesman, if you were a retailer, 
fc'hat would you do to sell more cigars? 
jThink it over, and then tell the secret 
■to one of your customers. If it 
vorks — tell it to all your customers. 



When a Bonn needn deflating. Little Alex ia 
the man to do the job. hi thin inntall- 
ment, Mr. Smart debunks the Salesman- 
ager who tries to tell real salesmen how 
to sell. 

Another letter that this particular 
jobber's salesman and I had a great 
deal of fun over was a hooey one 
about certain questions you shouldn't 
ask a buyer. For instance (so said 
this one - man - brain - trust) you 
shouldn't ask a dealer "how your brand 
is selling." 

Listen to this. He said it wasn't 
up to dealer to tell you, but up to 
you to tell the dealer — that nine times 
out of ten, you only asked that ques- 
tion just to break the ice and that 
you get yourself in a hole if the 
dealer, intentionally or otherwise, tries 
to confuse you by saying, "It doesn't 
sell." 

Now get this — you can't do any- 
thing or say anything about your 
brand if it isn't selling, and you can't 
get an order unless it is selling, so 
instead of losing time by asking for 
an order before you know whether 
the brand is selling or not, don't you 
have to ask the dealer and find out? 

Incidentally, to prove my point, I 
asked this very question of one of my 
Sales Managers and barken to his 
answer: "You would, Mr. Smart, but 
a great many salesmen wouldn't." I 
cherish that reply, 'cause it sure does 
show that I brilliantly stand out away 
from a bunch of other salesmen. 



always use to put over a short day's 
showing was the idea I initially 
sprung — telling the Boss "your car 
broke down and you lost four hours 
getting it fixed." The jobbers' sales- 
men of this country owe a great deal 
to me! 

One time, I worked for, or was with, 
a manufacturer who was simply bugs 
on the subject of store advertising — 
window posters, display cards and 
other advertising junk. He used to 
preach that he didn't want "salesmen 
to sell cigars but wanted salesmen 
who could make cigars sell." 

If I understand the English lan- 
guage correctly, and I admit that I do, 
I ask you, what is the difference? He 
used to say that "it is easy to get a 
dealer to buy . . . the real selling job 
is to help the dealer sell" and that 
"you get the dealer to sell by getting 
the consumer to buy." 

Window posters! Window posters! 
Window posters! Gad, he tried to 
pound window posters into us day and 
night ... he did get some of his sales- 
men to use window posters regularly 
I and these salesmen usually headed the 
list in volume of business, but why 
shouldn't they? The brands sold bet- 
ter in their territories, and if the 
cigars sold better why shouldn't they 
get their customers to buy in bigger 
quantities? 




DON'T BE A 1933 MODEL 

This isn't last year. Business con- 
ditions in 1934 are vastly different 
from business conditions in 1933. 

There are probably on your list a 
whole lot of customers whom you have 
been passing by because their credit 
was bad, or they weren't buying — or 
something. 

Try working those worked-out 
claims again. Thar's gold in them 
hills yet, 

WHEN IS 100% NOT 100%? 

A certain jobber, by dint of sweat 
and effort, succeeded in placing his 
brand in every one of the 119 outlets 
in one section of his territory. He was 
certain he had 1007© distribution. And 
he was right — only, he was wrong. 

One day, January 6th to be exact, 
a check-up revealea that 71 retailers 
out of the 119 did not have this brand 
in stock. The jobber had thought the 
sub- jobber was looking after these 
accounts. 

This jobber, by the way, was not 
asleep at the switch. He had con- 
tacted each of the 119 accounts every 
two weeks. But a lot can happen in 
two weeks — and often does. Mr. Job- 
ber and Mr. Salesman — how's your 
distribution as of today? 

They say McCormick invented the 
mechanical reaper because he was too 
lazy to cut his wheat by hand. There 
are cigar salesmen so lazy that they 
put up window posters to make their 
own work easier. 



In his next and concluding chapter 
the greatest salesman of all time will 
bring his amazing intellect to bear on 
such knotty problems as case display 
and how to handle the home office. 
"The Memoirs of Alex Smart is a first- 
class correspondence course in sales- 
manship." writes one reader. We'll 

say so— 

THE EDITORS. 



BAYUK BRANDS BLILD BUSINESS 

Bayuk Philadelphia Perfecto 
Havana Ribbon 
Mapacuba 

Charles Thomson 
Prince Hamlet 




C?5^ 



D. B. I. 



•4M,„i,„^,l ^ni, BAYUK riGARS. INC.. PhUa- 
*»lphin ^ M«Jt«,r. of Jimm rtgan »tmcm 1897 



Another question you shouldn't ask 
a customer (so wrote the Brain 
Monopolizer in this sales letter) was 
"How's Business?" This "word-wiz- 
ard" would have you believe that 
when you ask that question, the 
answer, kiddingly or otherwise, might 
|l)e, "It's Bum"— and then maybe you 
wouldn't want to call the buyer a liar 
and yet if you accept his statement 
as being true, you lessen your chance 
of selling him. 

That's what he says. I say, "Bolo- 
ney" with a big B. Now, I know I can 
tell if business in bum with any dealer 
by figuring how he has been buying 
my brands, and if I come to the con- 
clusion that business is off with him, 
what is the harm of having him con- 
firm it? If business is bum, business 
is bum, and what can I do about it? 
I don't make business good or bad for 
my customers ... I take business 
from my customers if there is any to 
give me . . . I'm a salesman, I am. 

Some Fast Alibis 

Yes, I was a big help to jobbers' 
salesmen as a factory man ... I 
gave 'em all I had, to add on to what 
they already didn't know. 

And, as a manufacturer's salesman, 
I learned some of 'em how to hold out 
a few orders each day to provide enuf 
orders for the day of the big ball 
game. Another clever trick, since the 
advent of the automobile, you could 




No, these boys don't adorn the top 
brackets on Uncle Sam's income tax 
blanks. They are another breed of 
millionaire, and not one of them in- 
herited his millions, either. Each and 
every one of them got his by honest 
toil. 

They are charter members of a club 
formed by the salesmen of one of the 
factory branches of a leading cigar 



manufacturer. To become eligible to 
membership each of these chaps had 
to sell at least one million cigars dur- 
ing 1933. Some of them sold in excess 
of five millions. 

Mr. Jobber, how would you like to 
have a Millionaire Club in your sales 
organization? All right, what's stop- 
ping you? Let's have more and bigger 
and better Millionaire Clubs in 1934. 



MIA. 




pHIbADEli 




BAYUK BUSINESS BOOMING 

ROM tlie reports emanatiTig from Miami and 
other points in Florida, it appears that sales 
managers and other executives of companies 
scattered all over the country have decided 
simultaneously that that state now oiTers the best op- 
portunities for the stimulation of business. At any 
rate, thev have been flocking down there in droves. 
Of cours'e, the Loughran-Carnera championship fight 
had nothing to do Vith that hegira. We know that 
for a certaintv in the case of one executive, even 
though he hails from the home town of the Kitner 
Street Adonis contending for the world's champion- 
ship title. 

We refer to A. Jos. Ne\\Tnan, vice-president in 
charge of sales of Bayuk Cigars, Inc., who timed his 
business trip to Florida when business could be done 
with no competition from tisticulTs, and, from all ac- 
counts, he did the business — and then came home be- 
fore the title bout. 

Chambers & Owens, Janesville, Wis., are doing 
an outstanding job promoting the sale of Bayuk 
Phillies in their territory, and were recently assisted 
bv W. B. Schulte, Bavuk salesman, in a special drive 
on the brand. 

Charles M. Sledd, ^^^lolesale Merc. Co., Wheeling, 
W. Va., has been added to the Bayuk list of distributors 
for the Phillies cigar. 

John Heffernan & Son, Champaigne, 111., are mak- 
ing good inroads in Bayuk distribution and sales in 
their territory, and recently finished an effective cam- 
paign, assisted by Frank J.' Horning, Bayuk salesman. 
The multitude of friends of J. Vipond, of the 
Scranton Tobacco Co., have learned with pleasure that 
he is on the road to convalescence after an operation 
at the Hahnemann Hospital, Scranton, Pa. 



Benjamin Grabosky, of Grabosky Bros., Inc., 
Royalist manufacturers, has returned from his visit 
to New^ York State and the mid-west and reports the 
outlook highly encouraging for his brand. Plans are 
going forward at factory headquarters for the removal 
of their manufacturing operations to their larger 
quarters just a few doors away, on or about April 1st, 
when they will be in a position to take care of the 
steadily increasing demand for their brand. 

14 




James Heaney, of the American Cigar Co., was 
in town last week. 



O. C. Schneider, sales manager for the Bering 
factorv, Tampa, Fla., was a visitor at Yahn & McDon- 
nell, local distributors of the brand, last week. The 
Bering cigar enjoys a good demand here. 

William A. Copple, representing M. Marsh & Son, 
left the balmy (?) atmosphere of Atlantic City, where 
he maintains' his headquarters, long enough to pay us 
a visit recently. He reports Marsh i)roducts enjoying 
a wide popularity in this territory. 






Wm. F. Lakin, Waitt & Bond, is in town pro- 
moting the distribution and sale of the new Blackstone 
Panetela, through Yahn & McDonnell, Icoal dis- 
tributors of the brand. This brand has shown a sur- 
prising increase in sales since the advent of the new 
low price of two for fifteen cents. 



Robert Allely, who succeeded his late father as 
representative of the Christian Peper Tobacco Co., 
St. Louis, in this territory, is now working with 
the various jobbers getting the *'lay of the land" and 
rapidlv gaining a host of friends among tliose who 
lield h*is father in high esteem. The many friends of 
1'oni Allelv, whose untimely death occurred in Decem- 
l»Lr, are gratified that the Christian Peper Tobacco 
Co. has appointed Robert to carry on his father's 
good work for the Christian Peper brands. 



John Wagner and Sons, local distril)utors of high- 
unade cigars and tobacco products, report an excellent 
business for the first two months of this year, with 
their Wagner brand of cigars showing a particularly 
,^ood demand, and also a gratifying increase in the 
.^ale of their imported cigars, particularly in the top 
sizes. Stock of these imported brands is running low 
on account of recent internal troubles in Cuba, but new 
shipments are beginning to arrive and regular ship- 
ments are expected in the near future. 

Th€ Tobacco World 



S 



NEWS FROM CONGRESS 

(Continued from page 12) 

(odo on the forms used by the code authority shall 
t iKMoby waive or be estopped from setting up any right 
which such member of the industry may possess under 
uciieral or statutory law against any arbitrary, oppres- 
sive, injurious or unreasonable action by any adminis- 
uative official or agency under the code. 

"Members of the industry not assenting to the 
code on the forms above mentioned cannot be denied 
aiiy of the rights and remedies afforded by the code 
>ave only that they wdll not enjoy the right to file com- 
plaints before the administrative agencies provided for 
111 the code. Upon acceptance of any of the beneiits 
and advantages of the code, such members of the indus- 
try may be assessed a reasonable amount, subject to 
Iho approval of the administrator, to help defray the 
cxponses of administering the code but not otherwise." 

Cj3 Ct3 Ct3 

XDIVIDUAL members of code authorities are 
to be relieved of responsibility for the actions 
of their fellow members under a provision 
which has been drafted l)y the legal division of 
the National Recovery Administration and submitted 
to industries for inclusion in their codes. Tlie provision 
is suggested as an amendment to codes already in oper- 
ation, and is expected to be required by the administra- 
tion in codes which have not yet been acted upon. 

Necessity for the clause is due to the fact that code 
authorities are not Government agencies and are re- 
sponsible to members of the industry for their actions, 
should they exceed the Umits of the authority conferred 
upon them by their code. 

It is provided that ''nothing contained in this code 
shall constitute the members of the code authority part- 
ners for any purpose nor shall any member of tlie code 
authority be liable in any manner to any one for any 
act of any other member,' officer, agent or employee of 
the code authority. Nor shall any member of the code 
authority, nor any agent thereof, exercising reasonable 
diligence in the conduct of his duties hereunder be lia- 
ble to any one for any action or omission to act under 
this code, except for his own wilful mis-feasance or non- 
t't'asnnce. '' 




LUCIA DI LAMMERMOOR SATURDAY 



On Saturday, March :kl, the comi)lete 
"laicia ])i Lammermoor," will be broadcast 
li oiii the Metropolitan Opera House in New Yoi 
Mvcr both the Red and Blue Networks of the N 
liroadcasting Company, through the courtesy 
American Tobacco Co. The series of 
t'anious operas being broadcast this season each 
day is keeping the imblic reminded of the high quality 
ot' Luckv Strike cigarettes. 



opera, 
direct 
k Citv, 
ational 
of the 
world- 
Sat ur- 



DISTRIBUTORS SET PRICE 

At a recent meeting of the Philadeli)hia Division 
of the National Association of T(»bacco Distributors 
it was recommended that an established prici' of $1.14 
a carton oil the po|)ular brands of ciuarettes be inain- 
iuined on sales of one to four cartons, $1.12 on sales 
"T live to forty-nine cartons, and $1.10 on sales (jf fifty 
cartons or more. It is lioped that jobbers will realize 
the importance of maintaining this i)rice and thus as- 
sist in bettering conditions in their industry. 

March t, igj;4 




MURIEL 



CIGAR 



Full 
Size 




5^ 



Long 
Filler 



Exceptional cigar 
quality for a nickel 




Other sizes 

l.onftfellow* , . . , 3 for 25<f 

PrrfecttJS 1*^ 

Aristocrats 2 for 25f 



Mfd. I>T r. LOSILLASO CO., INC. 



TOBACCO TRADE ORGANIZATIONS 

TOBACCX) MERCHANTS ASSOCIATION ^^ShN^ 

OF UNITED STATES "^^iij^ 

JESSE A. BLOCK. Wheeling. W. V« i';E!!!!H*«t 

CHARLES J. EISENLOHR. Philadelphia. P* vfr^P^SdSt 

JULIUS LICHTENSTEIN. New York. N. Y •;•..; •• ;y'"r««mltt2 

WILLIAM BEST. New York. N. Y Chairman Executire Committee 

MAI. GEORGE W. HILL. New York. N. Y vIcrKeSdeS 

GEORGE H HUMMELL. New York. N. Y X-"'E"! 3e«I 

H. H. SHELTON. Washington. D. C vv!'Kn 3!nt 

WILLIAM T. REED. Richmond. Va v "E^n j!«t 

HARVEY L. HIRST. Philadelphia. Pa ^'^ ^?r!!.™ 

ASA LEMLEIN. New York. N. Y •• ,••■/•;; :"Jn^J^r 

CHARLES DUSHKIND. New York. N. Y Counsel and Managing Director 

Headquarters. 341 Madison Ave., New York City 

ALLIED TOBACCO LEAGUE OF AMERICA 

W. D. SPALDING. Cincinnati. Ohio Vrr ' ' El!!!^!^! 

CHAS. B. WITTROCK. Cincinnati. Ohio Vice-President 

GEO. S. ENGEL. Covington. Ky iI!"iL\!; 

WM. S. GOLDENBURG. Cincinnati. Ohio secretary 

ASSOaATED CIGAR MFRS. AND LEAF TOBACCO DEALERS 

JOHN H. DUYS. New York City «";*v;;:pl!!lH!nI 

MILTON RANCK. Lancaster. Pa -First Vice- Pres den* 

D. EMIL KLEIN. New York City Second y«"-P««'J«°J 

LEE SAMUELS. New York City SecreUryTre«surer 

NATIONAL BOARD OF TOBACCO SALESMEN'S 

ASSOCIATIONS 

JACK A. MARTIN. Newark. N. J i" 'V v-'E^tH!"! 

ALBERT FREEMAN. New York. N. Y -First Vice-President 

IRVEN M. MOSS. Trenton. N. J Second Vice-President 

ABE BROWN. 180 Grumman Ave., Newark, N. J SecreUry -Treasurer 

NEW YORK CIGAR MANUFACTURERS' BOARD OF 

TRADE 

ASA LEMLEIN v 'Elf'li"! 

SAMUEL WASSERMAN Vice-Preaident 

THE NATIONAL ASSOCIATIONS OF TOBACCO 

DISTRIBUTORS 

C. A. JUST. St. Louis. Mo President 

MAX TACOBOWTTZ. 84 Montgomery St., Jersey City. N. J ....Secretary 

E. ASBURY DAVIS. Baltimore. Md Vice-President 

E. W. HARRIS. Indianapolis. Ind Vice- Resident 

JONATHAN VIPOND. Scranton, Pa Vice-j^esident 

GEO. B. SCRAMBLING, Cleveland, Ohio Treasttrer 

IS 



FOREIGN MARKETS 

(Continued from Page 6) 

during the past year. Total imports of unmanufac- 
tured tobacco from the United States for this period 
in 1933 were 131,245,326 pounds, as against 105,615,342 
in the same period of 1932, and 130,242,433 in 1931. 
Imports of Empire tobacco during the corresponding 
eleven-month periods were 47,389,372 in 1933, 45,236,- 
680 in 1932, and 32,252,180 in 1931. 

Imports of manufactured Empire tobaccos are, of 
course, unimportant in comparison with the imports 
of raw tobacco, but it is nevertheless noted that they 
show no signs of increase. The total imports of Em- 
pire manufactured tobacco in 1932-33 were 50,071 
pounds, which compares with 56,794 pounds in the 
previous year and 73,514 pounds in 1930-31. The 
1932-33 figure is the smallest for the ten years, and the 
1930-31 figure is the largest. Cigars are by far the 
most important item in the manufactured tobacco 
category. Imports in 1932-33 amounted to 35,216 
jDounds, which represents a more or less steady decline 
since 1924-25, when imports amounted to 54,718 
pounds. 

During the fiscal year 1932-33, the report states, 
2,436,590 pounds of tobacco were ** delivered as stores" 
for sale on British naval and merchant vessels. Of this 
amount, 372,710 pounds were foreign manufactured 
tobacco. 

SPAIX — According to a report by Acting Ameri- 
can Commercial Attache Julian C. Greenup to the 
Tobacco Division, Department of Commerce, collec- 
tions from the sale of tobacco from January 1, 1932, 



to October 31, 1932, amounted to 381.5 million pesetas, 
compared with 389.16 millions for the corresponding 
period of 1933. 

CANADA— The 1933 crop of bright flue-cured to- 
bacco in the Norfolk district was about 18,000,000 
pounds compared with 27,000,000 pounds in 1932, and 
tlie quality was inferior. Due to the co-operative 
elTorts of growers, the average price per pound ob- 
tained for the crop, however, will probably exceed that 
for 1932. {American Consul John D. Johnso7i.) 

IRELAND — The recent improvement in trade and 
industry in Northern Ireland was maintained during 
January. The volume of business of the local tobacco 
manufacturing industry has been maintained at the 
level established in recent months. Termination of the 
coupon feature in merchandising has not appreciably 
affected sales. Several hundred workers were added to 
the staff of one of the local factories during the past 
year. The local industry is obtaining an incronsing 
share of the tobacco business in the home market. Pros- 
pects for improved business in the linen industry as the 
season develops are considered favorable. The agri- 
cultural situation shows improvement. {American 
Consul General Liician Memminger.) 

PORTUGAL— During the year 1933, the commer- 
cial and industrial conditions of Portugal showed con- 
siderable improvement over those of the previous two 
years, notably so in the agricultural sections of the 
country where the harvest was good and the demand 
increasing. The exchange situation as regards the 
Portuguese Escudo has improved. Tobacco is among 
the principal articles imported into Portugal. {Amer- 
ican Consul General Carl F. Deirhman.) 



New Contract for Georgia-Florida Growers 




X adjustment plan to increase the returns of 
contracting growers of Georgia-Florida (type 
62) cigar leaf tobacco in 1934 and 1935 has 
been announced by the Agricultural Adjust- 
ment Administration. Under this program by which 
it is hoped to restrict production of this type by 40 
per cent, below the past five-year average, approxi- 
mately $260,000 will be paid to producers, of which 
$130,000 will be paid this season if all who are eligible 
participate. 

Under the new contract two payments will be 
made in 1934 to contracting producers. The first pay- 
ment would be $30 per acre on the tobacco harvested, 
and would be paid before September 1, 1934. The sec- 
ond pa^^nent of $30 per acre would be made after 
proof of compliance with the terms of the contract ha^ 
been submitted by the producer. The growers of this 
type of tobacco were included in the cigar-leaf adjust- 
ment program of 1933, and contracting farmers were 
notified December 28 that the Secretary of Agriculture 
would exercise his option under the original contract 
to restrict the 1934 acreage to approximately 2,000 
acres, and to require a limitation of production as 
well. The new contracts ratify that option. 

Acreage limitation is provided by making a *' to- 
bacco acreage allotment" to each grower. The base 
acreage of each farm covered by a contract is the aver- 
age acreage from which tobacco was harvested in the 
years 1929-33, inclusive, and the allotment is equal to 
the base acreage, unless the base exceeds five acres. 
If the base exceeds five acres, the allotment amounts 

j6 



to two-thirds of the base. Tobacco, under the contract, 
can be grown only on allotted acreage. 

Under the contract, production of the lower grades 
of tobacco, which represent a large part of the present 
excess supply, will be further restricted by a provi- 
sion that the top four leaves of each stalk of tobacco 
shall be left unharvested. 

Should all growers take advantage of the pro- 
gram, the total crop would be 10 to 15 per cent, lower 
than the estimated consumption for 1934. Most of 
the reduction would be from lower grades which arc 
produced at the top of the tobacco plants. 

As 93 per cent, of the growers were under 1933 
contracts, it is estimated that the sign-up of the new 
contracts will be made by practically all of the pro- 
ducers. The current average farm price for the type^ 
of tobacco covered is 25 per cent, below fair exchange 
value on the basis of crop reports. It is estimated thai 
the signers of contracts will receive an average of 15 
per cent, greater returns for their crop than those 
who are not under contract. 



DON SEBASTIAN SALES GOOD 

George ZitTerblatt, of Geo. ZitTerblatt & Co., ha^ 
left for a trip through the middle west visiting dis 
tributors of the Habanello brand. Reports from thos* 
points indicate' an increasing demand for tliis popular 
brand, which is very gratifying, and indicative of the 
general increasing confidenco in business condition- 
and future prospects. 

Th4 Tobacco World 







Seven Months Withdrawals for Consumption 



First 7 Mos. 
Fiscal Yr. 1934 



( 'igars : 



Class A— 

United States 
Puerto liico 
Philippine Is, 



2,285,985,470 + 

34,533,780 — 

140,288,510 + 



— Decrease 

+ Increase 

Quantity 



214,280,465 

2,714,105 

36,920,995 



Total 2,460,807,760 -f 248,487,355 



Class B— 

United States 
Puerto Rico . 
Philippine Is. 

Total 



20,023,035 

2,148,200 

106,084 



+ 



6,444,608 

2,075,700 

388,769 



22,277,319 — 4,757,677 



Class C— 

United States 
Puerto Rico . 
Philippine Is. 

Total 



359,026,612 
649,530 
170,762 

359,846,904 



81,873,728 

215,520 

8,760 

82,098,008 



Class D— 

United States 
Puerto Rico 
Philippine Is. 

Total 

Class E— 

United States 
Puerto Rico . 
Philippine Is. 

Total 



28,053,185 — 
1,000 — 
1,950 -f 



Total All Classes- 
United States . . 
Puerto Rico .... 
Philippine Is. . . 



28,056,135 — 

3,624,469 — 

2*55i — 

3,627,020 — 



2,696,712,771 -f 

37,332,510 — 

140,569,857 + 



3,401,335 

500 

74 

3,401,761 



432,312 

24*2i2 

456,524 



122,128,482 

854,425 

36,499,328 



Grand Total . 2,874,615,138 + 157,773,385 



Little Cigars: 

United States 
Puerto Rico . , 
Philippine Is. 



128,989,414 
1,780,000 



20,199,280 
1,020,000 



Total 130,769,414 — 21,219,280 



Cigarettes: 



United States 
Puerto Rico . 
Philippine Is, 



65,537,569,905 

2,836,000 

768,090 



+ 5,226,991,829 
+ 827,660 

— 394,680 



Total 65,541,173,995 + 5,227,424,809 



Large Cigarettes: 

United States . . 
Puerto Rico .... 
Philippine Is. . . 

X. oiai 

SnulT (lbs.): 
All United States. 

Tobacco (mfd. lbs.) : 

United States . . 
Philippine Is. . . 

Total 



9,591,900 + 

615,000 + 

6,200 — 



7,729,564 

285,000 

4,166 



10,213,100 + 8,010,398 



21,237,628 + 



944,363 



178,105,460 — 
71 — 



78,923 
96 



178,105,531 



79,019 



Send Two Dollars, with the coupon below to The 
Tobacco World, 236 Chestnut St., Phila., Pa., and 
get your copy twice a nionth for a year. 



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Office, 1181 Broadway, New York City 

FACTORIES: Tampa and Keif West. Florida 



OUR HIGB-GRADE NON-EVAPORATING 

CIGAR FLAVORS 

Make tobacco melCow and smooth In charactet 
and Impart a most palatable flavor 

FUYORS FOR SMOKING and CHEWING TOBACCO 

Write for List of Flavors for Special Brands 
BKTUN. AROMATIZE!, BOX FLAVORS. PASTE SWEETENERS 

FRIES & BRO.. 92 Reade Street. New York 



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POSITION WANTED 



CIGAR SALESMAN COVERING EASTERN PENNSYLVA- 
NIA and Local Territorj' desires connection. Large following. 
Address Box No. 580, "The Tobacco World." 



Newspaper and magazine advertising executive, thoroughly 
experienced, formerly with local newspapers and agencies, and also 
advertising manager. Position with firm desiring an advertising man, 
salesman or assistant to manager. Knows marketing, merchandis- 
ing and distribution. Salary not as important as opportunity to 
demonstrate actual worth and ability. References the highest. 
Address, F. H. Riordan, 5915 Webster Street, Philadelphia, Pa. 

CIGAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON 
Automatic Machines, wants a position. Also instructs beginners. 
Address Box No. 558, "The Tobacco World." 

FOR RENT 

OFFICE AND FLOORS FOR CIGAR MANUFACTURING OR 
STORAGE — No parking restrictions; good location; low rent; 
freight elevator and loading platform. Will divide. Metals Coating 
Company of America, 495 North Third Street, Philadelphia. 

HAVANA CIGARS 

BEER WITHOUT CIGARS, IS LIKE KISSING WITHOUT 
LOVE^ — Adopt as your slogan, "Kiss your beer, but love your ci- 
gars." Specially those Havana blended, "Good to the last Puff," 
manufactured by A. Ramirez & Co., Post Office Box 1168, Tampa, 
Fla. Write them for particulars today. 



Tobacco Merchants' Association 
Registration Bureau, ^NEw^io^K c^ty 

Schedule of Rates for Trade-Mark Services 
Effective April 1, 1916. 
Registration, (see Note A), $5.00 
Search, (see Note B), 1.00 

Transfer, 2.00 

Dnplicatp Certificatp, 2.00 

Note A— An allowance of $2 will be made to members of the Tobacco Mer- 
chants' Association on each registration. 

Note B— If a report on a search of a title necessitates the reporting of more 
than ten (10) titles, but less than twenty-one (21), an additional charge of One 
Dollar ($1.00) will be made. If it necessitates the reporting of more than twenty 
(20) titles, but less than thirty-one (31), an additional charge of Two Dollar* 
($2.00) will be made and so an additional charge of One Dollar ($1.00) will be 
made for every ten (10) additional titles necessarily reported. 



REGISTRATION 

TUSCORA: — 46,294. For cigars, cigarettes and tobacco. J. J. Mc 
Cauley & Son, Uhrichsville, Ohio, November 20, 19.33. 



TRANSFERS 

LANTANA: — 23,301 (Tobacco World). For cigars, cigarettes and 
smoking tobacco. Registered Xovcniber 13, 1911, by Dorr Cigar 
Factory, Augusta, (ia. Transferred to Diamond Joe Cigar Fac- 
tory, H, Fendrich, Evans ville, Indiana, February 9, 1934. 

CUSTOM MADE: — 46,290 (Tobacco Merchants' Association). For 
cigars only. Registered November 14, 1933, by Consolidated Litho. 
Corp., Brooklyn, N. Y. Transferred to Deisel-Wemmer-Gilbert 
Corp., Detroit, Mich., February 6, 1934. 

SANCTION:— 32,780 (Trade-Mark Record). For cigars, cigarettes 
and tobacco. Registered May 22, 1907, by Geo. Schlegel, New 
York, N. Y. Transferred to G. A. Kohler & Co., Yoe, Pa., Febru- 
ary 15, 1934. 




ADJUSTMENT PAYMENTS TO FARMERS 

A Y:\IKXTS of $1,546,175 liad been made to 
:?(Kn44 tobacco farmers up to February 1 in 
the adjii.stnient i)i-oi»:ram of the Agricultural 
Adjustment Administration, snnnnaries an- 
nounced bv the Administration show. Following is a 
1al)ulation of the payments ))V states: Connecticut, 
$lS8,()97.r){); Florida," $r,3,553.()5: (Jeorgia, $22,035.6(1; 
Illinois, $2()7.H5: Indiana, $1,529.1)5; Massachusetts, 
$92,:>77.1<); Minnesota, $18,061.41: New Hampshire, 
SL>,28S.(;0; New York, $23,380.53; Ohio, $282,615.63; 
Pennsylvania, $434,458.08; V<»rinont, $2,604.05; Wis- 
consin", $414,904.06. 



*'What a welcome visitor 

The Tobacco World 

must be to wholesalers and 
retailers ! 

**If they are only half as 
interested in reading it as 
we ourselves are, we're glad 
our ad is in it regularly" — 

says an advertiser. 



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Cigar Manufacturers who have not investigated the value of 
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Remember that Regjrdle» oi Price 

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THE TOBACCO WORLD 



Vol 54 



MARCH 15. 1934 



No. 6 



^«jE liavo boon ro-roa(lin.i»', with imich iiitorost, a 
\fj^ copy of William W. Young's "Tho Story or 
the Cigarette," inihlisliod in IDK). We men- 
tion tlie (late beoause most of our thinking, as 
wo hiy down the book, has to do with the almost un- 
believable changes that have taken place in the ciga- 
rette industry since the book was written. It hai)])ens 
that our copy is a presentation co])v, bearing a ty])e 
written note from (loorge W. Mill, at that time vice- 
])resident of the Amoi-ican Tobacco ('omj)any. In this 
note, after pointing with j)ride to the table showing the 
growth of cigarettes from 1,75(),U(H) in the vear 1869 
to l(;,427,()8G,()()(l in the year 1914, the last* year for 
which there was an official record at the time the book 
was written, ^Ir. Hill added: *T have no hesitation in 
going on record that the years following 1914 will 
show far greater increases than those i)receding 
1914.'' 

Ct3 Ct3 Ct3 



.^jJlAS George W. Hill a good prophet! We'll 
^\l5(l say he was. We're not going to bore you 
with a mass of tigures, showing the stupen- 
dous growth of cigarette consumption since 
the first year of the World War. You're familiar in 
a general way with them, anyway. But you will jirob- 
al)ly be thrown for a loop, as we were, to learn that 
in the single year of 1933, which was the nineteenth 
year following 1914, more cigarettes were made an<l 
sold than during the entire nineteen years ending with 
the year 1914. That's growth, it' you ask us. 

Another significant fact about the Yr)ung volume 
i^ that 100 of its 281 pages, nearly (JO per cent, of its 
contents, are devoted to a defense of the cigarette. 
AVc refer to the chapter headings: **('hemistry of the 
Cigarette," ^'Scientific Views on Sm(>ke," "Populai* 
l^nors About Tobacco," *'Tho Voice and Smoking," 
"The Question of Kxcess," *'The Cigarette in War," 
''The Cigarette and the Youth," "Smoking and 
Elliciency," and "Cigarette Legislation." 

What a far cry that is from the present attitude 
toward the cigarette! The cigarette today needs no 
defense. Anybody who wants a defense can find it 
in the way th(» cigarette helpe<l peoi)le to carry on 
during the last four vears. 

()n the contrary, you find a general acceptance of 
the cigarette, and a disposition to find the scientific 
reason tor the pleasure which arises from smoking, 
as witness the findings of the two Yale ])rofessors, as 
re|M>rted in the last issue of Thk Tobacco World. An 
eilitorial conunent on their scientific paper is so pat 
that we cannot resist the temptation to reproduce it 
Ihto, because of its interest to the trade. It is from 
tlie llarifitrd (Conn.) Timrs, an<l runs as follows: 




HE saying that where there is much smoke 
there must be some fire — perhaps including 
the glow of revived zest and the warmth of 
new sociability — may describe that a good 
smoke causes the smoker to be more cheerful, but it 
does not explain why this should be so. We now^ have 
it on good authority that the scientific explanation of 
the amazing cycle — tobacco — fire — smoke — cheerful- 
ness — may be stated in terms of sugar. 

"Two Yale laboratory technicians have come to 
the conclusion, as the result of their experiments, that 
'smoking produces a definite, although temporary, in- 
crease in the concentration of blood sugar, and a cor- 
responding increase in the rate of sugar combustion 
in the body.' There you have it — more blood sugar, 
and faster use of it, account for the smoker's pleas- 
urable feeling of well-being, affability and goodwill 
toward all men. 

** There is more to the explanation, but the fur- 
ther statement is not very revealing to the uninitiated 
in bio-chemistry. The sugar refueling, it seems, is 
brought about by the nicotine of tobacco acting as 
an alkaloid on the adrenals. It may be best to leave 
the explanation in terms of blood sugar. The term 
connotes many things in connection with a pleasant 
smoke, such as smothered feelings, pleasant anticipa- 
tions, engaging reveries, and the freedom to ask any 
colleague of the realm of the tobacco-sugar mystery, 
for a cigarette, cigar, or, at least, a match." 



Cj3 Ct3 [t3 



\WM ^'^ ^^^ ^^* smoke f asks Louis Nicholas, in a 
\f^ recent release of his syndicated iiews])aper 
feature, ' ' March of Science. ' ' In other words, 
what specifically is responsible for the pleasure 
derived from tobacco? Some psychologists, he writes, 
hold that it is purely a responsive habit; that the 
stimulus obtained from nicotine can be replaced by 
synthetic measures. For instance. Knight Dunlap, 
professor of psychology at Johns Hopkins University, 
lias gone so far as to advise the substitution of a rub- 
ber cigarette for the real article when someone wanted 
lo stop smoking. He, of course, apparently disregards 
the elTect of tobacco on the human system, l)elieving 
that the cigarette habit is largely mental. 

"Kecent experiments trace the reasons for smok- 
ing to the absorption of minute doses of nicotine by 
the body. The results, announced by Drs. H. W. 
Haggard and Leon A. Greenbeig, dispel a great many 
former theories, one of which lield that the satisfac- 
tion of smoking was linked with pyridene, a product 
of combustion. 

"Pyridene, it was pointed out, occurs in such a 
juvenile substitute as cornsilk, yet the inveterate 
smoker does not rely upon cornsilk." 



The TOBACCO WORLD (established 1881) is published by Tobacco World Corporation; Hobart B. Hankins, President and Treasurer; 
*^"*'d B. Hankins, Secretary. Office, 236 Chestnut Street, Philadelphia, Pa. Issued on the Ist and 15th of each month. Subscriptions, avail- 
able only to those engaged in the tobacco industry, $2.00 a year, 20 cents a copy; foreign, $3.50 a year. Entered as second-class mail matter, 
December 22, 1909, at the Pc»t Office, Philadelphia, Pa., under the Act of March 3, 1879. 



Stocks of Leaf Tobacco on Hand 




TOCKS of loaf tobacco in the United States 
owned bv dealers and mannfaetnrers 
amounted to 2,181,119,000 pounds on January 
1, 11):U compared with 2,144,733,000 pounds 
on January 1, 1933. This is an increase in the total 
stocks of 3(),386,000 pounds over the stocks of a year 
aiio January 1. From October 1, 1933 to January 1, 
1934 total stocks increased 173,084,000 pounds. The 
increase during- the same period of 1933, namely from 
October 1, 1932 to January 1, 1933, amounted to onlv 
49,722,000 pounds. 

Stocks of flue-cured tobacco on hand January 1, 
1934 ^vere 858,124,000 pounds, coni])ared with 769,497,- 
000 pounds on January 1, 1933, an increase of 88,()27,- 
000 pounds over the lioldinii:s of a year acfo. J)urini» 
the fourth quarter of 1933 flue-cured stocks increased 
252,414,000 i)ounds compared with an increase of onlv 
48,989,000 ])ounds durin-: the fourtli (juarter of 1932. 
The stocks of Type 11 on January 1, 1934 were re- 
ported as 348,966,000 pounds: Tvp'e 12 as 303,326,001) 
pounds; Type 13 as 146,713,000 pounds; and Type 14 
as 59,119,000 pounds. The detailed report by groups 
of grades shows about the same proi>ortion of tobacco 
in the various groups as previous rei)orts have shown. 

Stocks of fire-cured tobacco were rei)orted as 170,- 
761,000 ])ounds, on January 1, 1934 compared witli 
187,422,M0(> pounds on January 1, 1933. Total lire- 
cured stocks were nearly 17 million jmunds lower than 
they were a year ago January 1, and about 26 million 
pounds lower than on this previous quarter. Virginia 
lire-cured. Type 21, stocks reported as 23,109,000 
l)ounds on January 1 were about 8 million pounds 
lower than a year ago. Type 22, reported as 105,487,- 
000 j)ounds also showed a decrease of about 8 million 
pounds under the January 1, 1933 stocks. Type 23 
stocks re])orted as 3S,574,(HK) pounds were only a litth' 
over a million pounds lower than on January 1, 1933 
and showed an increase of ]],612,0(M) ]M)unds*oyer the 
])revious quarter holdings. Stocks of Henderson 
Stemming, Type 24, were reporte<l as .?..')91,0()() ])ounds 
on January 1, 1934. 

Burley stocks were about 34H> million ])ounds 
lower on January 1, 19:54 than tliey were at the be- 
ginning of 1933. The Januaiy 1, VJ'M report shows 
585,252,000 pounds of Burley (»n hand com])ared with 
619,690,0(MJ pounds (ni hand the iirevious year and 615,- 
930,000 ])ounds on the previous (juarter. Maryland 
tobacc<» stocks were slightly lowei- on January l' than 
they were on October l.'l!>:;.3, at which time thev 
reached a record high, hut they are still considerably 
higher than the average stocksover a period of years. 



The January 1, 1934 report shows 37,989,000 pounds 
of Maryland tobacco on hand. 

One-sucker stocks on January 1, 1934 amounted 
lo 27,384,000 pounds, 6,670,000 pounds lower than on 
January 1, 1933 and about 3 million pounds loAver 
than the ()ctol)er 1 stocks. Green River stocks re- 
l)orted as 35,101,000 pounds on January 1, 1934 were 
slightly higher than a year ago. Virginia sun-cured 
stocks totaled 2,284,000 pounds on January 1, about 
a million pounds lower than the previous year's stocks, 
^liscellaneous domestic stocks were reported as 2,184, 
000 pounds and foreign-grown other than cigar leaf 
as 74,034,000 pounds on January 1, 1})34. 

Stocks of American-grown cigar filler tyi)e?^ 
amounted to 167,953,000 pounds on January 1, 1934, 
comi)ared with 177,083,000 pounds on January 1, 

1933, a decrease of 9,130,000 pounds. Type 41, Penn- 
sylvania seedleaf stocks on January 1, 1934, were 91, 
672,000 pounds; Type 42, Oebhardt,* 21,376,000 pcumds; 
Type 43, Zimmer, 25,585,000 pounds; Type 44, Dutch, 
7,339,000 pounds; Type 45, Georgia and Florida sun- 
grown, 1,503,000 i)ounds; and Type 46, Porto Kican, 
20,487,000 j)ounds. The detailed* report shows about 
75 per cent, of the total filler type stocks in the (' 
group, and about 23 per cent, in the X grouj). 

The cigar binder type stocks were a little over 4 
million pounds higher on January 1, 1934 than they 
%vere on January 1, 1933. Total* binder type stocks 
were reported as 194,179,000 pounds on January 1, 

1934. Of this total 35,238,000 pounds were Type 51, 
Connecticut broadleaf; 34,486,000 pounds. Type 52, 
Havana seed ; 4,136,000 pounds Type 53, New York and 
Pennsylvania Havana seed; 75,0*!)5,0(I0 pounds South- 
ern Wisconsin; and 45,224,000 pounds Northern Wis- 
consin. The detailed report by groups of grades 
shows that of the total binder type stocks reported 
4,714,000 pounds are of wrapper quality, 69,850,000 
pounds are binders, 11,442,000 poumls are tillers, and 
107,889,000 pounds are stemming grade or X group 
tobacco. 

Shade-grown WTapper type stocks were 1,324,000 
pounds lower on January 1, 1934 than on January 1, 
1933. The January 1 report of this year shows 14, 
779,0(K) pounds on hand. Connecticut Vallev Shade, 
Type 61, stocks were 10,821,000 pounds, and the Geor- 
gia and Florida shade. Type 62, stocks were 3,958,000 
jmunds. Of tlie total shade tobacco stocks reported 
10,203,000 jmunds are shown in the A irrou]) as beinic 
of actual wrapjicr quality. 

Foreign cigar leaf tobacco stocks were reported 
as 11,095,000 pounds on January 1, 1934 ccnupared 
with 11,879,000 pounds on January 1, 1933. 



American Tobacco Company Report 




HE American Tobacco Conqiany, in a state- 
ment issued to stockholders, reports net in 
come foi- the year 1933, after depreciation, 
taxes, etc., of $17,401,207.93. While this fi- 
ure is approximately $26,000,000 h-ss than the net for 
1932, .Mr. George W. Hill, in a letter accompanying 
the statement, points out thai early last year it* be- 
came evident that protits for 1933*must be subordi- 
nated to tlie more inq)ortant consideration of maiu- 



taining volume of unit sales. To meet this problem 
successfully, it was necessaiy to reduce the price of 
Lucky Strike Cigarettes to a level which allowed onlv 
a very small profit. The report for 1933 r<»flects this 
sacrifice of profits. 

In continuing, Mr. Hill states that ''it is gratify 
ing to state that, as a result of this policy, unit sales 
of the standard package of Lucky Strike Cigarettes 
increased substantially over those of the preceding 

The Tobacco World 



year. At the same time our Company has given its 
best co-operation to the Government program of in- 
creasing the purchasing power of the farmer and the 



wage-earner. 



**In January of this year, due to increased costs 
and in view of better business conditions, cigarette 
prices were increased. Under these improved condi- 
tions, we are hopeful that our volume can be main- 
tained in 1934 at a fair price level." 

Operating profit of the company before deprecia- 
tion and all classes of taxes, was $18,500,528. Divi- 
dends received from wholly or partially owned sul)- 
sidiaries, and other dividends and income brought this 
figure up to $23,473,821. Deductions for premiums on 
bonds purchased and cancelled, interest, discount, etc., 

Assets : 

V asn ..................p o^,, '•)o,uo4.x I 

Accounts receivable 10,057,272.62 

Uills and mortgages receivable 2,601,496.99 

Leaf tobacco, manufactured stock, op- 
erating supplies, etc., at cost 115,480,476.52 

l*repaid insurance, etc 473,660.37 

Accounts receivable from subsidiary 

and affiliated conq)anies ..,...,.. 1,51(),535.52 
Stocks and bonds: 
Capital stocks of partly 
o w n e d domestic and 
wholly owned foreign 

subsidiaries \ .$42,367,8(M).28* 

Treasury stock at cost: 
11,200 shares of connnon 
stock and 55,362 shares 
of common stock H. . . 2,825,037.02 
(At market p r ices 
Februarv 1^ 1934, 
$5,014,071) 
Other investments, at 
amounts not in excess 

of cost 5,492,972.04 

(At market prices 
February 14, 1934, 

$4,671,058) 50,685,809.34 

lieal estate, machinery, tixtures, etc., at 
cost (less reserves for depreciation, 

$10,107,493.30) 21,349,200.71 

Brands, trade marks, patents, gootl will, 

etc 54,099,430.40 



•The American Tobacco Company's 
equity in the net assets of these 
subsidiaries, as shown by their bal- 
ance sheets at December 31, 1933, 
(net assets of foreign subsidiaries 
converted at par of exchange) in- 
eluding intangible assets of $3,973,- 
748.45, aggregated $43,451,351.96. 



$289,222,516.64 



and including a net loss on sale of securities of $144,- 
970, reduced this figure to $23,185,966. Further de- 
ductions for depreciation. State and Federal taxes, re 
duced net income for the year to $17,401,207.93. Out 
of this net figure, $3,161,982 was paid in dividends 
on the 6 per cent, preferred stock, and the balance of 
$14,239,225.93 equivalent to $3 a share on the common 
shares, was added to surplus account, which prior to 
that time totaled $118,107,617.47. From this account, 
$23,719,148.75 w^as paid out in dividends on the com- 
mon stock, leaving a balance in the surplus account at 
the end of 1933 of $108,627,694.65. 

The consolidated balance sheet of the company 
at the end of 1933 sets forth assets and liabilities as 
follows : 



LlABIIJTIRS: 

Accounts payable $ 

Bond interest accrued 

Accounts payable to subsidiary and affil- 
lated companies 

l*rovision for dividend on preferred 
stock, for quarter ended I)ecember 
31, 1933, payable January 2, 1934 

Provisions for advertising, taxes, etc.. 

Six per cent, bonds, maturing October 
1, 1944 

Four per cent, bonds, maturing August 
1, 1951 

Scrip and convertible dividend certifi- 
cates not yet presented for redemi)- 
tion or conversion 

Total Liabif.itiks 

Capital: 
Capital stock: 

Preferred, six per cent. 

c u m u 1 a t ive, ])ar 

value $100 per share, 

authorized 540,106 

shares, issued a n d 

outstandijug 526,997 

shares * 52,699,700.00 

Connnon, par v a 1 u e 

$25 i)er share, au- 

thor ized 2,000,000 

shares, issued l,t)09,- 

696 shares 

Connnon B, pai* value 

$25 per share, au- 

t ho r ized 4,000,000 

shares, issued 3,134,- 

135 shares 78,353,375.00 

$171,295,475.00 
Surplus, including $29,- 

451,261.88 paid in . . 108,627,694.65 



1,079,000.40 
16,043.42 

l,0f)8,l 55.74 



790,495.50 
5,360,402.93 

145,950.00 

831,250.00 

8,049.00 
9,299,346.99 



40,242,400.0(1 



279,923,169.65 
$289,222,516.64 



Leaf Tobacco Code Hearing 



Public hearing on a j>roposed code of fair com- 
petition for the leaf tobacco dealers, redryers, jiack 
urs and storers, has been ordered bv Secretary Wal 
lace, with the hearing set for 9.30 A. M., Wednesday, 
l^farch 21, at the Mayflower Hotel. Harry C. Cook 

March 15, 1934 



has been designated as the presiding officer. The pro 
posed code covers the business of packing, redryini^, 
stemming, storing, and rehandling tobacco lumght in 
its unstemmed fonn. Administration of the code would 
be by a code authority of live members. 



News From Congress 




Musings of a Cigar Store Indian 



_ 'AND 

Fe D E R A L 



Departments 




XDEFINITE postponement of the hearings on 
tobacco taxes which were sclieduled to begin 
March 12 has been ordered by the House 
Wavs and Means Connnittee because of the 
taritr legislation asked by President Roosevelt. The 
study of tobacco levies was designed to explore the 
situation arising out of the complaints of manufactur- 
ers of ten-cent cigarettes that they could not success- 
fully comi)ete with the slightly more expensive brands 
so long as they were required to pay a tax of six cents 
on each package. 

Bcause of the importance of the tariff legislation, 
it was deemed best to postpone the study of taxation 
until the legislation giving the President authority 
to consummate reciprocal trade agreements with other 
governments, in the making of which he would be em- 
])owered to reduce or increase existing rates of duty 
by not more than 50 pr cent., was out of the way. 

Introduction of the tariff measure followed re- 
ceipt at the ('ai)ital March 2 of a message fioni Pres- 
ident Roosevelt, in which he i)ointed out that other 
countries are to an ever-increasing extent winnimr 
their share of international trade ))y negotiated recip- 
rocal tariff' agreements and declared that **if Amer- 
ican agricultural and industrial interests are to re- 
tain their deserved place in this trade the American 
(lovernment must be in a jjosition to l)argain for thai 
l)lace with other governments by rapid and decisive 
negotiation based on a carefully considered program, 
and to grant with discernment corresponding oppor- 
tunities in the American market for foreign products 
supplementary to our own. 

*'If the American Government is not in a posi- 
tion to make fair offers for fair opportunities, its trade 
will be superseded," he warned. 



CJ3 CtJ Ct3 



OLDING that both Federal and State govern- 
ments have the right to regulate and fix prices, 
along witli their power of other regulations 
in the ])ublic interest, the I'nited States Su- 
preme Court this month placed its seal of approval 
upon any cost or price fixing ])rovisions authorized 
under the national recovery or agricultural adjust- 
ment acts. Th(' court u})held the conviction of a New 
York gi-ocor charged with evading the New York State 
milk law fixing tlie price at nine cents per (piart and 
prohibiting any subterfuge for reducing the price, by 
giving away a loaf of bread with two quarts of nine- 
cent milk. 

6 




From oup Washington Bureau 62?Albee Builoing 



The decision was reached bv a five-to-four vote, 
as m the recent liberal decision upholding the Min- 
nesota mortgage moratorium statute. 

*'A state is free to adopt whatever economic ])ol- 
icy may reasonably be deemed to promote i)ul)lic wel 
fare, and to enforce that i)olicy by legislation a(lai)ti'd 
to its purposes," the court held. "Tlie courts are 
witliout autliority either to declare such policy or, 
when it is declared by the legislative arm, to override 
it. If the laws i)assed are seen to have a reasonable 
relation to a ])roper legislative purfjose, and aro 
neither ai-bitrary nor discriminatory, the reipiirements 
of due ])rocess are satisfietl. 

**And it is ecpndly clear that if the legislative pol- 
icy be to curb unrestrained and harmful comjietition 
by measures which an* not arbitrary or discrimina- 
tory, it does not lie with the courts to determine that 
the rule is unwise. 

*' If the law-making body wffhfn its splierc of gov- 
<*rnment concludes that the conditi(»ns or practices in 
an industry make unrestricted competition an inaile- 
quate safeguard of the consumer's interests, ])roduce 
waste harmful to the public, threaten ultimately to cut 
off the supply of a commodity needed by the* pul)lic, 
or j)ortend the destruction of the industry itself," the 
decision continued, "ai)propriate statutes ])asse(l in 
an honest effort to correct the threatened cons<Mjuence 
inay not be set aside because the regulation a(lo]»ted 
fixes prices reasonably ileemed by the legislature to be 
fair to those engagecl in the industry and to the con- 
suming public." 

CJ] Ct) [t3 

FFK'IALS i>\' tile Xationnl Recover^' Admin- 
istration and the Treasury Department are 
studying plans for advancing credits to small 
businesses, possibly with a partial guarantee, 
as a means of aiding establishments which find them 
selves in difticullies as a I'esult of the application of 
code provisions which increase their production costs. 
The administration has bet on' it a plan for the grant 
ing of three yea 1- loans up to $12,r>on, the (lovernment 
to guaiantee uj> l(. so per cent. There are also under 
<'onsideration reconunendations for creating a new 
method to pro\ i<le capital loans of up to $r)(M>0() for 
a period of five to s<'ven vears. 

In all probability, these loans would be made 
through intermediate credit banks to be established 
under a plan said t<» have already been apjiroved by 
the Federal Reserve ( 'ouncil. 




By Chief "Young-Man-Smoke-Cigars" 





OR the pleasure of those readers who have 
expressed their interest in our previous re- 
searches, we are glad to reprint some para- 
graphs from "The Passing of the Wooden 
Indian" by John L. Morrison in the October, 1J)2S, 
issue of Scribners'. It is described as ''a lively article 
about the static cigar store l)raves who have almost 
become onlv a memorv and a simile. Well-known 
sculptors have carved them, curious people such as 
Fid Ilen have owned them — and Mr. Morrison collects 
them." The article, by the way, is illustrated by j>hoto- 
ni'aphs from the author's collection. 

C?3 Ct] Ct) 

rr^VERYBODY knows what a wooden Indian is, 
but nobody knows where a wooden Indian is. 
A survey of the liome town will confirm this. 
If the home town be Chicago, i^rooklyn, 
Minneapolis or Baltimore, there is only one red brother 
in wood keeping lonely vigil, while in New Orleans, 
Cleveland, Washington, Los Angeles, Boston, Pitts- 
burgh, Denver, Atlanta, Louisville or Detroit, not a 
lone chief or s(pniw stands in solid dignity and beckons 
the devotee of the weed. Manhattan has two, San 
Francisco and Cincinnati a few. St. Louis profier three, 
Kansas City two, Milwaukee two, Philadelphia three, 
and London a corporal's guard. Reference is to cigar- 
store Indians on duty on the traditional spot, the side- 
walk. A few are kept inside tobacco shops as relics. 
Some are safe in museums. Others, but not many, are 
cached by hopeful dealers in antitpies. 

Cj3 Ct3 Ct3 

1110 zero hour for cigar-store Indians in the 
big cities struck years ago, as the most casual 
observer knows, but a popular impression ob- 
tains that tobacco shoi)s in the smaller towns 
anil villages are still sentinelled by Indians galore, 
bearing the open box of solid-pine cigars and gazing 
thoughtfully toward the nearest ocean — there only ;i 
few years ago, possibly, but gone now — gone so quickly 
and silent Iv that no one has misse«l them. 



Ct3 Ct3 CJ3 




(Continued on Page 17) 



Th* Tobacco World 



«-— -OODEN Indians are n<«! intiigenons tn Amer- 
^\^ ican soil. As early as the reign of James 1 
the wooden Indian was a familiar sight in 
Merrie England. There's juctorial evidence 
he was no novelty in KilT, tlie year Pocahontas died, 
the year prior to Sir Walter Raleigh's beheading, and 
only twelve years after the well-known and justly ccle 
l»raled (lunpowder Plot of Mr. Guy Fawkes. The fig- 
ure ha^^ character, thouich the cigar looks more like 
llie horn of plenty on the old cMUitlKHise facade or in 
<i!ie of those symbolic things about labor, cnninierct' 
and agriculturt'. The sculptor doubtless ncxcr saw ar 

March 75, /y.?-/ 




Indian. Little wonder that a writer, two hundred and 
fifty-nine years later, described it as a 'negro.' Europe 
had settled down in the belief that the American Indian 
wore no clothes except a kilt of tobacco leaves — a won- 
derful triad of utility when one thinks of it, at once 
nether api)arel, currency and the makin's, to be drawn 
on at will, up to certain limits of decency. The London 
types were so Africanic that the public dubbed them 
'black l)oys' foi- two hundred years or more, although 
lliere was a nearer approacli I0 anthropological ac- 
curacy in the ' Virginie-man,' l)oth types later super- 
seded bv the 'Iliuhlnnder. ' 



Ct) Ct3 Cf3 

HE woodcut of this ancient Indian shows him 
against a background indicative of an apothe- 
cary's shop. Tobacco was first sold by apothe- 
caries, and the thrill of edging quietly to the 
prescription desk is nothing new; in IfllT, on ])resenta- 
tion of proper jirescription, one could get genuine pre- 
Guiqiowder Plot Old Ilispanola leaf for family and 
medicinal use. The figure stood on the counter and 
not in front of the shop. Xearlv three hundred vears 
later this was still the custom in the Netherlands; in- 
deed, fiirures twentv-two to thirlv inches in height, gen- 
orations later, were to be seen occusiuually in to- 
bacconists' windows in New Y<»rk. 



Cj] ft3 tt] 

Ali be it from me to cast the slightest aspersion 
on our Eurcqjean ancestors, especially the 
j Nordic; but from all accounts, while everybody 
in the luOii's believed in signs, those which 
were to be seen rather than read wen- most esteemed, 
such as the signs of the Zodiac, exenqJified, for some 
unaccountable reason, in almanacs by a rather comely 
gentleman with a recent major abdominal section, the 
ends neatly turned back, exiMtsinu his internal economy 
tn the vuliiai" uaze. 



IS 




Ct] [t] Ct] 



T W'Ol'Ll) hv too encyclo])aedic to recoi-d the 
Old World history of collateral and variant 
tobacco >iuns and ligures, such as the tobacco 
rolls, the (plaint i)ainted l)oards jiroclaiming 
tlie jnys of snulT-taking, smoking and drinking (chew- 
11m). While the Tmlus americanus woodensis orig- 
inated in England, it was on the American soil ho 
rea<'hed his grandeur of lineament and war |>aint. Of 
the early wooden Indians, an odd, cupidlike Poca- 
huiitas tliat once stood guard (ui Hancock Street, 1 »<»-.- 
ton, dates from 17.">(>, admiring fiiends sa\ . The 
pioneer aulhenticiled appearance of a cigar-store show 
ligure was in 1770, when Christ«q)lH»r Demuth openrd 
his little tobaciMt slir.p in Lancaster, Pa., not likely the 



first of its kind in Anioiica but ainoni;- the earliest and 
today the oklest. AVhik^ the ])i()neer Denuith vended 
both eigars and snntV, the hitter was the more ])()i)uhir; 
therefore it is not surprising that the lignre he sek'eted 
was not that of a noble denizen of the traekless forest, 
but a delieate iHinuet-tyi)e gentleman extending a snulT 
box invitingly. For a eenturv and a half Ihis figure, 
nuule by an unknown Ameriean wood carver, stood 
vigil, a familiar liguic to Ixevolutionary soldieis, 
Conestoga wagon crews, and travelers on this old high- 
way to over the Alleghanies, the Far West of that day. 
The figure, in recent years, has stood inside ihe shoj). 




ALTDfOHF had cigar-store figures before 
17^(0, according to local tradition, but, except- 
ing an inii)ortation in 1830, there is a hiatus 
in the history of wooden Indians until the 
forties. 1). 11. McAii)in's tobacco store, Catherine 
Street, New York, was sentinelled by a short, swarthy, 
dignilied Indian as early as 1840; he followed his 
owner to 77 Avenue 1) in 18(i(), and, in the eighties, to 
the 'uptown' factory at Avenue I) and lOth Street, 
finally retiring from the tobacco world to the hostelry 
bearing his nuister's name, spending his time in the 
lol)l)v, almost invariably near the cigai' counter." 



95 Per Cent, of Farms Under Contract 




OMPILATIOX of the results of the sign-up of 
the flue-cure<l tobacco adjustment eimlraets in- 
dicates that ])roducers tunc ottered eonti'acts 
to cover ap])roximately !>.") i»er cent, of the eli- 
gible farms, it has been announced Itv the Aurieultural 
Adjustment Administration today. The sign-up repre- 
sents more than l(Kl,(in(i contracts from the liue-cui-ed 
area, according to officials of the Tobacco Section. The 
distribution of contracts, by States, is as follows: Vir- 
ginia, 11,000; North Carolina, (mJHHI; South Carolimi, 
16,000; Georgia, 12,500; and I'lorida, lOOU. 

Approximately 1500 fine-cured contracts have been 
received in AVashington and are now being ])assed U])on 
for rental i)ayments at the rate of H^n.oO ]>er acre for 
each acre taken out of tobacco ])roduction un«ler the 
contract terms. Ai)plications for price-ecjualizing i)ay- 
ments accompanied a number ot" these contracts, and 
checks covering these a]»])lications will go out with the 
first iiavment checks. Thus far the onlv contracts ac- 
eepted in the State offices and sent to AVashington for 
acceptance and payment were those in which the 1 !).').'» 
production was substantiated by acce])table document- 
ary evidence and in which the siuner selected so i)cr 
cent, of the 1933 acreage an<l i»roduction as the base 
acreage and ])roduction for his farm. 

Because of the over-run in both acreage and ])ro- 
duction in 11K>1 and 11K>2, and in production for some 
counties in 19.'>.'>, adjustments must l»e made that will 
bring the contract figure.^ into line with official figures. 



Every effort is ])eing made to have individual i)ro- 
ducers adjust their figures and thereby obviate the need 
for a])])lying a i)ro rata cut to all contract claims. 

Api)lications foi' ])rice-e(pu\lizing payments, which 
are ])rovided at the rate of 20 ])er cent, of the net sales 
value of the 1933 tobacco sold before Se])tend)er 25th, 
and 10 i)er cent, of the net sale value of such tobacco 
sold after Se})tember 2r)th and ])efore the nmrked ad- 
vance in i)rice have been made by ])ractically all of the 
contracting farmers in Georgia, Florida, South Caro- 
lina, border counties of North Carolina, and by a large 
number in the new and middle belt of North Carolina. 

The ])rice-equalizing payments are to be made to 
compensate, in so far as possible, those producers who 
sold their tobacco before im])rovement in ])rices re- 
sulted from the sign-up of contracts and tlie fine-cured 
marketing agreement. These ])ayments of approxi- 
n.ately if4,300,000 will be divided l)etween States, as 
follows: Florida, H^70,000 to 800 producers; (leorgia, 
i|Jl,030,000 to 10,000 ])roducers; South Carolina, Jf^Mfi.'), 
000 to 12,000 ]»roducers; and North (^nolina, $2,010,- 
000 to between 30,000 and 40,000 i)roducers. 

Produceis' claims regarding sales upon which the 
l)rice-e(pudizing j)ayments will be nuule, are substanti- 
ated by evidence j)repare(l from warehouse records 
under the direction of the Tobacco Section. This work 
is ])ractically completed, and a]>plications for payments 
will be reviewed with the corres])onding production ad- 
justment contract. Checks for these ])ayments are 
expected to accomi)any tiie rentjd payments. 



W. W. Wagner on State Liquor Board 




NNOFNCHMFNT was made last week of the 
appointment of \V. Worrell AVagner, former 
member of the firm of .John AVagner iV Sons, 
Dock Street, distrilmtors of high-grade cigars 
and tobacco products, as a member of the Pennsyl- 
vania Li(pior ('(uitrol Hoaid, thus briniiing the Board 
to its full <piota of mend)ershi]) (three members), an<l 
at the same tim<' placing on the Hoard one of the best 
qualified men in the State for that position. 

In naming Mr. AN'agnei*, (JoviMiior Pinchot said 
he is *'i)ecidiarly fitted for the position because of his 
long exjierienee in the purcha>.e <»f li(|uors." 

Mr. Wauner, before )»i-ohibit ion, was a member of 
the firm of .John Wagner k Sons. In announcing the 
aiipointment Governor Pinchot said, "This firm is one 
of the besi -known liquor establishments in Pennsyl- 
vania. It has been in eontiiMKUis e\isten<'e, except fo!' 
the period of national prohil)it ion, since 1847, when 
8 



it was established bv Mr. AVagn<'r's father. W. AVor- 
lell AVagner retired from the business in 1919 and has 
not re-entered it. AVhen he was a mend)er of the firm 
he did all the purchasing for the company. 

"He is thoroughly familiar with the work he was 
selected to <lo. This fa<*t, t(»getiier with his high stand- 
ing among the |)eople of I*hiladelphia, makes his ap- 
pointment most desiral)le. " 

Mr. AVagner is a native of Philadelphia, and now 
resides on West School House Lane, Germantown. 
His sunmier home is in Atlantic City. 

He is a mend)er of the T^nion League, Art Club, 
Germantown and Morion Cricket Clubs, Barge Club, 
Schuylkill Fish and the I*hiladelphia Club. He is a 
bnMher of .Tohn and Joseph AVagner, who during the 
peri«)d of ])rohibition carried on the business of .lohn 
AVagner cSi: Sons, at 23:» Dock Street, as importers of 
high-grad*' cigars, mineral waters, teas, spices, jams, 




Those penciled scrawls 

are a sign of jangled nerves 





If you're the stolid, phlegmatic sort of person 
who doesn't feel things very deeply, you'll 
probably never have to worry about nerves. 
But if you're high-strung, alive, sensitive, 
watch out. 

See whether you scribble things on bits of 
paper, bite your nails, jump at unexpected 
noises— they're signs oi jan^Ud nerves. 

So be careful. Get enough sleep- 
fresh air — recreation. And make 
Camels your smoke. 

For Camel's costlier tobaccos never 
jangle your nerves — no matter how 
steadily you smoke. 

COSTLIER TOBACCOS 

Camels are made from finer, MORE EXPENSIVE 
TOBACCOS than any other popular brand of cigarettes ! 



SMOKE AS MANY AS YOU WANT... 
THEY NEVER GET ON YOUR NERVES! 

TlllLir lyi CAMEL CARAVAN fmalmrii>t Chn Cny't CASA LOIUA Orchmilra anj atkmr HtaJlintrt Evry Tnxlay ami 
I UnC in I Thmr^Jmy ut 19P.M.. E.S.T.-»P.M., C.S.T.-aP.IH.. U.S.T.-TP.M.. P.S.T..OMr WABC- Co/umtia Nmlwotk 



HowareYOUR nerves? 

TRY THIS TEST 




0906^* 



809102 

778*2^ 
66A32* 
82\86^ 

9816^* 




Here is a series of numbers. Two 
numbers in this series contain the 
same digits . . . but not in the same 
order. See how fast you can pick 
out these two. Average time is one 
minute. 

Frank J. Marshall (Camel smoker), chess 

champion, picked the two numbers 

in thirty seconds. 



Copjiiglil, ll'3l, it. J. lU'}iiulUi TuUitciv Cuiupiiii> 




jellies, etc 



^tarch 13, i^j}4 



Tht Tobacco World 



Re^ iew of Foreign Tobacco Markets 




OLLOAVlXd is a ('ttuliiniatioii of I he it'\ "u'W 

of foreign tobacco markols from the Marel; 

1st issue of The Toi^aiho \Voi;ij). Tlie present 

iiistahneiit (.'ni))rai'('s S\\ itzcrhuul, Philippine 

Ishmds, Ariieiitiiia, CMiiiia and Czeehoslovakia. The 

review is eoiiipiled from American commercial allache 

reports. 

SWITZERT.AXl^— Tlie Imlk of importefl leaf to- 
])acco in Switzerland comes from the I nitetl States, hi 
\\K\o Swiss imi)orts t)f this commodity amounted to 
8098 metric tons, as com])ared with T.l'c' tons in 1!>.')'J. 
The American share in this trade was 'S,]SV metric tons, 
with a value of gold $l,().*)l\!>48, against .'Hol metric 
tons, with a value of $l,()8r),;]nl in l!)o2. The tpiality of 
the imports of American tobacco was iioticeablv lower 
this vear, since the domestic demand was for the 
cheajier grades. Sales of .Vmcrican cigarettes in- 
creased from >r-K',4r)!) in 15K'>2 to gold $.')0,.']47. The in- 
crease indicated here could be attributed to the new 
Swiss tobacco sales taxes and in<'reased imjjort duties 
which became effective after the devaluation of the 
dollar. The ])ros}>ect of higher duties and taxes, 
coujjled with an o})i)ortunity to ])urchase clieai)er in 
the United States due to the low rate of the dollar, 
caused importers to i)urchase large stores, which 
showed sul)stantiallv in the statistics for ]IK>3. {Amcr- 
lean Consul Maurice W. Alfatfer,) 

PlllLlPPlXK ISLANDS— The total value of all 
tobaccos shipped from the Philii)i)ine Islands during 
19o3 amounted to 10,3r)r),U(K) pesos. >]xi)orts of leaf 
tobacco totalled lt>,S!»7 tons, valued at o,(!8rj,( K M ) pesos; 
cigars, 196,141, niH) |)ieces, valued at f),ol(»,()UU pesos; 
cigarette^s, 21,.j8U,0iM) ijicces, valued at ()2,(HH) pesos, 
and other tobacco iiroducts, 909 tons, valued at 292,- 
UOO pesos, line to reduced imports of leaf tobacco 
from the Philippines by the Spanish Tobacco Monop- 
(►]>, a loss of 2U i)er cent, in quantity and <»\ <'r one-third 
in value was recortled for the ycai'. Spain contimied to 
hold first place as an importer of J*hilipi)ine tobacco. 
The Lilited States accounted for the l)ulk of the cigar 
trade, with approximately 1S(MHHI,0()U j»ieces, an in- 
crease of about 10 ])er cent, over 1I>.'j2. (AhHrifau 
Trade Couiuiissiom r K. I). Ih.^ii r.) 

AI\(tKX1TXA — Imports of toi»acco and cigarettes 
iiito Ai'geiitina have dropped otf con.->i«h'rabIv in the 
last thi'ee years, the decrease ])cing attriliuted to three 
factor> current ecmiomic conditions, the d«'\-eloj)ment 
of the local industry, and taxation. According to a 
report by American Vice Consul John < . Pool, made 
public by the Tobacco Division, Department of ( "om- 
merce, the United States still enjoy> a laii* ])ercentage 
f)f the Argentina tol)acco tiade, in >i)ite of the ap- 
parent general declining market. 

It has been noted that a steadv incrcfise was legis- 
tered from 1925 up to and through P).'>0, an<l since then 
a droj) to a point where l!i."»2 importations were ajipi'ox- 
iniately 60 per cent. le>s than the peak year. There is 
.i«> doulit but that the (h'cline in tlie value of the ]M'so 
on international exchanue has been a factoi- in cieating 
this situation. Imported cigarettes ha^■ ' become moi'e 
expensive, and c<iiise(piently within the reach of fewer 
people. On the other hand, the consumption of the 
cheaper grade of cigarettes is estimated to have more 
than doubled in the last two years. T'lie same liolds 

JO . 



true with regard to tobacco, the importations of which 
have recently decreased. 

During 19ol, importations of leaf and cut tobacco 
increased even though the restrictive influences of the 
ecniiomic depression were being felt. This is accounted 
lor bv large iMirchases of stocks bv local nianufactur- 
iiig ct>mi>anies who, having heard rumors of increases 
III impoit duties, imi)orted as much as possible for 
liilure use. Jt mav be mentioned in this connection 
ihal the 10 \)vv cent, emergency surtax was decreeil on 
()ctol)er 6lh of that year, antl put into etTect three days 
later. Imports of leaf tobacco from the L'nited Stales 
duiing 19o2 were valued at 29(),473 gold jjcsos, repre- 
senting api)roximately one-third of the 19.*)1 figure. 
The tobacco importecl from the Uniteil States is the 
\ irginia and Kentucky types, from (J recce and Tur- 
key, Turkish type, and from l*araguay, black toi>acco. 
Tliese vririous types are used for blending with the 
locally- grown product. 

Cigarettes are imported from twenty-three coun- 
tries and imports of cigarettes from the United States 
predominate. The value of 1932 imjjorts from the 
l'nited States totalled 184,755 gold pesos, which is less 
than one-half of I he 1931 figure. Nevertheless the 
United States continues to occupy first i)lace, folhjwed 
by the United Kingdom and Italy. Generally speak- 
ing, American antl British cigarettes are of the most 
exi»ensive type, the Italian blend being more i^opularly 
priced. 

The use of locally produced tobacco has increased 
greatly during recent years. It is estimated that about 
twice as nuich of it is used as of the imptuted variety. 
The cheaper grades of cigarettes, especially the lU 
centavos class, are made entirely of it. It is said to 
1» of ]Joor (juality, however, and not suitable for use 
alone in the more expensive types, which are l)lended 
with tobacco from other countries. It is estimated that 
one large concern is using approximately 40 per cent. 
(ti the locally-grown product in their nnuiufacture, 
whereas two years ago they were using approxinuitely 
20 i)er cent. At one tune they used none. It may bo 
'iicntioned also, that this firm is making cigarettes of 
\'irginia type of tobacco largely grown in Argentina, 
ami thai their sah' is steadily increasing. The price of 
tjjese cigarettes ranges from 20 to 35 centavos for 
packag<' of ten, whereas the standard American 
brands (large size) retail at 1.10 i)esos. This firm 
al>o manufactures several of the stanrlard English 
brands, importing the raw material for their manu- 
lacture. 

The total consumption of tobac<jo in Argentina is 
-aid to l)e stable at the moment, but a decided tendency 
ha> been shown in favor of cheaper tobaccos and cigar- 
ettes. This has necessarily meant a decrease in the 
sales (d' the imi»orled articles, and there is but little 
in<licatioii of their regaining a stronger position. 

(JlllXA — According to olhcial records of the To- 
bacco Division, Department of Connnerce, the lejif to- 
bacco trad*' (d the United States with China shows a 
uain of ajjproximately 27 per cent, in value during 
VXVi over the ])receding year. In weight there is a 
slight dilVerence in favor of 1932. Preliminary figures 
show that the leaf tobacco trad(» during ]!i33 amounted 
to 73,924,448 ])ounds, \alued at $9,728,252, compared 
with 74,780,896 pounds, valued at $7,654,312 during 

The Tobacco World 




^ ^^ 





A sensible package 
10 cents 



ghCut 



C> I9M. Liccrrr tt Myers Tobacco Co 



the pipe toLacco that's MILD 
the pipe tohacco that's COOL 

«_yGZf.y see/n to lilie H 



March 75, 79?^ 



tt 



1932. The cigarette trade shows a slight increase in 
\olume and a slight decrease in value during 11)33, as 
compared w ith VSo2. The 11)33 iigures show 81,4()0,()U() 
cigarettes, valued at i^23h,4L"), and those of 11)32 show 
81,15-1,01)0 cigarettes, valued at $255,22l). 

From the standpoint ol* tliinese statistics as re- 
viewed by Assistant Commercial Attache A. Bland 
Calder, JShanghai, leaf tobacco imi)orls into China 
from the United States in 11)33 were the lowest I'or sev- 
eral years. This may be accounted for bv the fact that 
after October 1, 11)33, o\er 32,000,000 pounds of leaf 
left the United iStates en route to China. In other 
words, it is obvious that a great difference may ])e ac- 
counted for "in transit". 

As stated in the report of Mr. Cidder, the linal 
compilation of Chinese importations will probably 
show a iigure but little above 53 million iiounds for the 
year, comijared with approximaicly 7l) million pounds 
for 11)32, and more than 150 million ijounds for the best 
previous year. Approximately \)7 per cent, of 11)33 
imports were entered at Shanghai, the center of the 
cigarette manufacturing industry. Actual gross im- 
ports into Shanghai for the full twelve months period 
of 11)33 totalled 52,481,000 pounds, u\: which }»8..)3 i)er 
cent., or 51,714,000 pounds, was from the United States, 
the small balance consisting in part of ciuar tobaccos 
from the Philippine Islands. Api>roximately 2,542,000 
pounds were re-exported during the year. The ])ulk 
of this consisted of return shijunents of old croj) to- 
bacco to the United States to meet needs, for certain 
grades, created by a short 11)32 cro]) in the United 
States. The short American 11)32 crop which resulted 
in a limited supply of the grades ordinarily used in 
China, along with higher ijrices, enabled Shanghai 
dealers to clear up heavy over-stocks of 11)31 and older 
crop tobacco with minimized losses on a great deal of 
it and satisfactory protits on the balance, such that 
stocks at the end of 11)33 were relatively moderate 
consisting largely of 11)33 crop tobacco. 

The higher Am.erican prices of toi)acco in United 
States currency have for the most part been otfset by 
exchange such that the Chinese factori**s are able this 
season to buy better grades of American tobacco at tile 
same prices paid for lower grades last year. 

The growing of \'irginia ty])e Bright Flue-cured 
leaf in China in 1D33 exi)ande(i with indications that 
linal estimates may run to 125 million jiounds. This 
is the largest crop on record. Production of this type 
of leaf in China began under American tutelage in 
11)15, when upwards of half a million pounds -were 
grown. Ten years later production was running from 
50 to 80 million pounds per annum. The 11)32 crop 
was somewhat above lOO million pounds. Due to 
smaller returns to farmers for the 11)33 croj), it is an- 
ticipated that acreage may be smaller in 11)34. All 
crop estimates are subject \n modilication from time 
to time as more conclusive data becomes available. 

The large 1933 croj) of China leaf, together with a 
45 per cent, advance in December, 19.33, in cigarette 
taxation, will without doul»t make for further increases 
in the ijr()]>ortion of China-grown tobacco in many 
brands and will mean the elimination of American to- 
bacco entirely fiom many of tlie low-grade brands of 
cigarettes. Xo one can jiredict what liie elTe<'t of the 
higher taxation will be on cigarett ' consumption. 
Manufacturei's exi)ress the view, howe\ei-, tliat the 
taxed production l)y legitimate industry will droj) and 
that untaxed illegitinude traffic in ciii:arettes will in- 
crease. Shouhl cigarette consumjition in China hold 



12 



up to a Iigure of 70 billion cigarettes, then it is con- 
ceivable that the consumption of American leaf to- 
bacco may be more nearly average than was the case 
in 1932, though not as promising as in previous good 
years. While manufacturers have been endeavoring 
to devise means of absorbing the new^ tax and the dis- 
locations to cigarette trade have been considerable in 
making adjustments to the new tax schedule only the 
experience of the next few months will leveal whether 
cigarette consumi)tion will be to a great degree un- 
favorably alfected. 

OtVtake of American leaf from Shanghai stocks in 
December following the imposition of the new tax was 
only about (iO per cent, of normal for this season of 
the year, with definite indications that manufacturers 
are using larger proportions of local leaf in blends 
and are exhibiting a tendency to confine purchases of 
American leaf to better grades and lesser (piantities 
than heretofore used. 

Cigaiette manufacturing is the third largest of 
China's modern industries, and is largely concentrated 
in Shanghai, with several huntlred cigarette machines 
installed in this district, though not necessarily all in 
operation. About 400 of the nuichines are in Chinese- 
owned factories. Many of these have improved their 
(Mpiipment during the year by installation of more up- 
to-date machines, discarding anti(puited tyjies. There 
are still ai)proximately (iO Chinese cigarette factories 
operating, but 15 of these ijroduce less than 10 cases of 
50,000 cigarettes each per month, while 2(1 produce less 
than 100 cases each per month. Only 10 Chinese con- 
cerns produce over 1000 cases per month. Houghly, 
over 00 per cent, of the total i)roduction by Chinese 
plants is by the four largest concerns. There is room 
for improved management in nearly all plants. Many 
of the smaller factories operate on a virtual '*hit-or- 
miss" basis, with little accurate knowledge of their 
actual production and distribution costs, such that it is 
believed in the keen competition that exists, numbers 
of them will eventually be eliminated or be obliged to 
coml>ine and adopt stricter control, as well as better 
accounting systems. 

Cigarette importations have fallen off to negli- 
gible (puuitities compared with i)revious }ears and may 
be expected to show still further decline because of 
the high tariffs and comi)aratively low local produc- 
tion costs. 

Imports of cigarettes into China for eleven months 
ot^ 1933 totalled only approximately 223 million i)ieces, 
of which about 64 millions were from the United States. 
The total import is less than a third of the volume 
lnought in during 1932. Five years ago cigarette im- 
ports to China were running over nine and a half 
billion })ieces annually. Increasing tariffs and taxa- 
tion have reduced this figure to relatively negligible 
amounts. 

CZF( 'llOSLOVAKIA — According to information 
made public by the Czechoslovak Tol)acco Monopoly, 
its receipts in December, 1933, amounted to 153 million 
crowns ($4,600,000 gohl), as cxmipared with 142 million 
<'rowns ($4,200,000 gold) received in November, 1933. 
I)uring the year 1933 the gross receipts of the Monop- 
ctly amounted to ISOS million ciowns ($54,200,000), as 
comiiared with 1975 million crowns ($59,200,000) in 
1932. The net anuHint turne<l over to the State Treas- 
ury in 1933 totalled 1315 million crowns ($39,400,000), 
as compared with 1326 million crowns ($39,700,000) in 
1932, a (lecrease of 11 million crowns ($300,(KM)). 
i American Comtuercial Attache Sam E. Wonds.) 

The Tobacco World 



Cigarettes 1, 2, 3, in Advertising Leadership 




N presenting the findings of Media Records, 
Inc., whom they asked to determine last year's 
|{ newspa])er linage of the 300 largest national 
advertisers, the ])u])lishers of Printers' Ink 
said: **The figures nuiy sur])rise you. For instance, 
if you guess the leader to have been General Foods, 
you'll prove yourself a bad handica|)per — and not 
inuch better if you assign the leadersliip to General 
Motors. If you'll take a tip, lay your bets like this: 
\i. J. Reynolds to wdn, Liggett & Myers to place, and 
(ieneral Motors to show\" 

As a matter of fact, if you list the individual 
advertisers, the American Tobacco Co. easily cap- 
tures third i^lace, since General Motors represents the 
linage of eighteen separate accounts, while the Amer- 
ican Tobacco ('o. advertising in news])a])ers during 
1933 was devoted exclusively to Lucky Strike. 

Thus the three largest advertisers in newspapers 
are cigarette manufacturers. 

Of the total of 300 companies listed, 12 are to- 
bacco companies. The following table gives the num- 
ber of agate lines of advertising used by each one of 
the dozen. The figures in parenthesis show, in each 



case, the nmnber of cities in which the advertising 
appeared. 

R. J. Reynolds Tobacco Co.: Camel, 16,828,670 
(81); Tobacco Products, 322,127 (80); Total, 17,150,- 
797. 

Liggett & ^Fyers Tobacco Co.: Chesterfield, 13,- 
5S4,34(') (SI) ; Granger Rough Cut, 1,404,246 (32) ; To- 
tal, 14,988,586. 

Amei-ican Tobacco Co.: Luckv Sti-ike, 12,092,407 

(81). 

(Jeneral Cigar Corp.: White Owl, 857,251 (62); 
Van Dvck, 440,800 (27); Robert Burns, 27,655 (6); 
Total, 1,325,706. 

P. Lorillard Co.: Old Gold, 1,267,351 (70). 

Bavuk (^igars. Inc.: Bavuk Phillies, 909,095 (34) ; 
^^apacuba, 39,342 (4) ; Total, 948,437. 

(J. IF. P. Cigar Co.: El Producto, 730,864 (52). 

Webster-Kisenlohr, Inc.: Girard, 279,546 (17); 
Tom Moore, 18,596 (8) ; Total, 298,142. 

(V)ngress Cigar Co. : La Palina, 170,830 (20) ; Rec- 
ollection, 109,291 (9); Total, 280,121. 

K. Regensburg & Sons: Admiration, 177,738 (3). 

Axton Fisher Tobacco Co.: 141,240 (46). 

Consolidated Cigar Corp.: Dutcli Masters, 66,467 
(9) ; Harvester, 56,205 (15) ; Total, 122,672. 



4700 Acres Advisable Shade Acreage 




KCRKTARYOF A(}RIcrLTrRK HKXRYA. 
WAUiACH has announced that the advisable 
acreage for Connecticut Valley shade-grown 
tobacco, IT. S. Type 61 (a), for jnoduction in 
1934 is 4700 acres. The aniiouncement of the acreage 
is in accordance with tin* marketing agreement ©n* 
lered into several months ago by handlers of this tyjMB 
of tobacco in ('onnecticut, Massachusetts, Xew 
Hampshire aiul Vermont. Fndei- the maiketing agree- 
ment the acreage committee set up undei- the agree- 
ment is to allot the 47i)0 acres of production among 
i;rowers on an ecpiitable basis, and parties to the agree- 
ment and license can handle only the production from 
>uch allot te<l acreage during the 1934 crop year. 



In a statement concerning the advisable acreage, 
J. B. Hut son, chief of the Tobacco Section of the Agri- 
cult uial Adjustment Administration, said, "The acre- 
age set forth, 4700 jicres, would produce, at average 
yield, a crop slightly smaller than the consumption of 
the 1932-33 marketing season, and a crop approxi- 
mately 10 ])er cent, smaller than the estimated con- 
sumption of the current marketing season. Indications 
are that prices received by growers for this tobacco 
during the current season are averaging approximately 
40 per cent, more than those received a year ago. 

"It is believed that with the 1934 croj) limited to 
4700 acres, some reduction in excess stocks would be 
brought about which should contribute to further im- 
provement ill th<^ ])rice situation." 



Marketing Agreements Effective December 1 




KCRETARY OF A(iRIcrLTURK liEXRV A. 
WALIiACH has signed two marketing agree- 
ments for dark air-cui*ed and lire cuicd to- 
bacco, the Agricultural Adjustment Adminis- 
tration announced. Th(» agi'eements were nia<le etVec- 
tive as of December L 193.3. In one of the agreements 
manufacturers of snutT agree to purchase specified 
<|uantities of these types of tol)acc<> at minimum avei- 
age prices for the season langing lu'tween 7' i to 14 
cents per i>ound. Since early in January, when the 
agreement in regard to connnitments and minimum 
piices was tentatively reached, prices <if the snuiT 
grades have steadily advanced. 

Purchases of minimum (pnintities l>y domestic buy- 
ers of (ireen River, One Sucker, and Virginia sun-cur<Ml 
tobacco at specified minimum average prices are pro- 
vided for in the tither agreenuMit. Prices for these 
ty|)es have also ex]H'rienced a steady advanct* since an 
agreement was tentativelv reached earlv in Januarv. 

March 13, 1934 



These types have been selling at prices ranging from 
50 to more than 100 i)er cent, above the price levels of 
th<' 1!)32 marketing season. 



OLD AGE OF CIGARETTES 

Cigarettes were known in Brazil and other parts 
of South America as early as the middle of the 
eighteenth century, writes a correspondent ([uoted by 
the Irish Toharm Trade JnitruaU and from there they 
were introduced into Si)ain, where Casanova learne<l 
the habit of cigarette smoking. France was the next 
stronghold of the cigarette, though not until the 1840's. 
Then we find travelers in the Auvergne and the Rhone 
country saying not only that the habit of smoking 
cigarettes is (piite la grandc nmdr of late with certain 
French ladies, l)ut even that the beggars in the streets 
have paper cigars (called cigarettes) in their mouths. 

i3 





"DOUBLE CIGARETTES" IN 1865 

HAT there is historical precedent for tlie inaiiu- 
facture of long cigarettes, to be cut to standard 
length before smoking, is shomi by tlie follow- 
ing extract from Count Corti's '* History of 
Smoking": ''It was in Austria in 1865 that the first 
real cigarette — tlie 'double cigarette' as it was called — 
was introduced by the Kegie ; it was about three times 
as long as tliosc of today, with a moutiipiece at eithei- 
end, and was cut into two before using. The demand 
for them increased so rapidly that in 1806 sixteen mil- 
lion were sold in Austria. Before long, however, they 
made way for the single cigarette of finer quality, while 
the cigar, especially the Virginian variety, continued 
to hold the first place well into the 'eighties'; the 
Emperor Francis Joseph, for instance, always pre- 
ferred a cigar." 

The Axton-Fisher Tobacco Co., Louisville, Ky., is 
now putting out an eleven-inch cigarette, which is four 
cigarettes in one. It is named Head Play. 

NEW ADJUSTMENT RULINGS 

LEVEN new administrative rulings on tobacco 
adjustment contracts have been announced bv 

• 

the Agricultural Adjustment Administration. 

The rulings, for the most part, are interj)reta- 
tions of certain general conditions arising under all 
tobacco contracts. A few outline ]n-ocedure under spe- 
cific contracts, otTering new o]itions for base acreage 
and production to farmers signing fire-cured and Vir- 
ginia sun-cured contracts and an (»])tion for the base 
yield per acre in certain areas in case of Maryland to- 
bacco. 

Instructions for determining choice of cf)ntracts 
when ditfcrent types of tobacco are grown on the same 
farm, the manner of handlinu a contract on a farm 
rented for cash for VXU only, division of the first ad- 
justment ])aymciit ])etween landhu'd and tenant, and 
possible excei)tions by which one «»f a grouj) of farms 
may be exem})tcd from a contract, aic pi-ovidcd for in 
the new rulings. 

BAYUK OPPOSED TO SECURITIES ACT 

Harry 8. Kothschild, president of Bayuk Cigars, 
Inc., in a letter to .stockholders last week, set forth hi> 
()l)inion that if the Fletcher-Haylnun Hill (National 
Securities Exchange Act of V.rM) is enacted into law in 
its present form, Bayuk Cigars, Inc., might find it 
iiuulvisable to continue the listing of its stock upon 
the New York Stock Exchange, and term- a- "drastic" 
some provisions of the bill. 

Under the registration statement required by the 
bill, according to Mr. Kothschild, the ((.nijianv must 
agree to abide by all future rules and regulations nuule 
by the Federal Trade Commission. In addition, the 
bill confers special powers on the commission over 
listed com])anies, which are so extensive that, to a large 
degree, the commission would control the management 
of listed corporations in matteis, which, in the opinion 
of officers of Bayuk Cigais, should be left to the direc- 
tion of tlie l)oard of directors. 

In his letter, Mr. Kothschild asks them to urge 
their representatives in Congress to vote auainst th(^ 
passage of the bill. 

Bayuk Cigars, Inc., has its ueneral offices in J*hila- 
delphia, where also are lncat<'d four of the company's 
twt'hc cigar manufacturiim ])laiits, 

t4 



"WORLD'S CHAMPION SMOKER 



a 




X BKKHITOX, EXliLAND, we learn through 
the Canadian Cigar and Tobacco Journal, there 
is a pretty, blue-eyed blonde who lays claim to 
being the world's champion smoker. She is 
twenty-seven years old and her name is Miss Kathleen 
V\'onde AVest. Every day of her life she smokes from 
lifty to sixty cigarettes, besides several pipesful of 
sli-ong tobacco, just to add variety. In a recent com- 
l»etition, which included men as well as women, she 
smoked continuously for nineteen hours, "chain- 
smoking ]f)() cigarettes, an average of one every six 
minutes." She easily out smoked all her competitors, 
and at the final put!' of hei- IDOth cigarette she was only 
slightly dizzy, according to her own statement. 

Fpon medical examiiuition, the only advice her 
l)hysician could give was to "have a few hours' rest." 
When the cham])ion gets tired of cigarettes, she cuts 
them out for a tVw days and manages to smoke about 
two ounces of good strong tobacco — "for I also like a 
]iipe. " AVhat a woman! 



TAX HEARINGS POSTPONED 

Announcing a temporary postponement of the 
h(s-irings on tobacco taxation, which were scheduled to 
be held on March 12th before the subcommittee ap- 
j)oiiited by the AVays and .Means Conmiittee, Congress- 
man Fred M. Vinson, chairman of the sul)committee, 
issued the following statement : 

"The tobacco tax hearings schedided ])efore the 
subcommittee of the Ways and Cleans Committee on 
March 12th are tem))orarily ])ost]ioned. This action 
was announced by I\epresentative Fred M. Vinson, of 
Kentuckv, chairman of the subconnnittee, todav. This 
action was taken on account of the fact that the tarifT 
bill will be under consideration throughout the time set 
apart for the tobacco tax hearings. 

"Mr, Vinson stated that while no definite date is 
assigned for the tobacco tax hearings, it will be his pur- 
pose to set the hearings at the earliest dale possible 
after the conclusion of the taritT measures." 

It is expected that the new date for the tobacco tax 
j'cai'ings will be annoinicetl short Iv. 



GOLDSTEIN BAYUK 

Miss Bernice Estelle Bayuk, daughter of Mr. and 
Mrs. Sanmel Bayuk, of Wyncote, Pa., and Samuel 
(joldstein, son of Mr. and Afrs. William Goldstein, of 
Denver, were married cm March Kith in Adath 
.Teshurun Synagogue, Broad and Diamond Streets, 
Philadelphia. Kablu Max D. Klein officiated. The 
bride was given in nuirriage by her fatlier. Chairman 
of the Board of Bayuk Cigars* Inc. Albert Freewahl 
was best man. Following a lioneymoon trip in Denver, 
Mr. and Afrs. (Joldstein will live at the Westluiry, 
Fifteenth and Spruce Streets. Philadelphia. 



DEISELWEMMER GILBERT REPORTS 

Deisel-Weimner (iilbert Corji. reports for liKV^, as 
certitied by indejjendciit auditors, net profit of $25J),75<> 
after charges, depreciation. Federal taxes and pro- 
xision for ])ossil)le los> (A' funds in closed l)anks, equal, 
after 7 per cent, preferred dividend requirements, to 
x'Veiiiy live cents a share on 204,.'?20 sluires of conunon 
stock. Tliis compares with $2^X)JiU'), or eighty-five 
<ents a shaie on 20r>,r»N(J <M»ininon shares in l!>32. ' 

Tht Tobacco World 




f)HIbADEl2«>MIA. 



I < 



MAC" TAKES A VACATION 




(j. ^FacALLISTER, known familiarly as 
*'^Iac" to everyone in the trade in Northern 
New Jersev, where he is Bavuk territorial 
manager, and distinguished, among other 
things, by his disinclination to take a vacation, sur- 
prised his friends by loading the Missus into the car 
and driving to Miami and otlier Fhirida points for ten 
(lays' recreation. He returned home full of orange 
juice and an and)ition to make this the biggest year 
for Phillies in his bailiwick. 

Jacob Mendelsohn, of Chicago, has joined the 
Bayuk selling organization with head(iuarters in the 
Windy City, to look after sales of Bayuk products in 
lliat sector, ill conjunction witii Zolla Bros., distrib 

utors. 

Amster Kirtz Cigar Co., of Cleveland, is spread- 
ing the gospel of B. 1*. denuuid and increasing dis- 
iriluition, with the assistance of Bayuk Salesman I*. 
T. Morris. 

C M. Bristow, Bayuk salesnuui, has been work- 
ing with Huser Cigar Co., Huntingdon, Ind., Bayuk 
distributor for that region, and is putting the Phillies 
before the consumer in a most effective nuinner. 

The ciack Bavuk bowlini,^ team is getting all set 
lo establisii new records in strikes and spares at tlie 
A. B. C. tournament in Peoria, which opened on March 
"^th and will close on A])ril !Mh. 



Cigarette Time is being featured by Vahn v^c Mc- 
Donnell in their chain of retail stands througliout the 
city with good success. This i- a nientliolate<l ciga- 
rette retailing at fifteen cents. The new brand is be- 
ing supplied to their own stands only. 



Medalist sales are sh<»winLi increases here since 
the advent of new sizes: Xew Yorker and Kitz, re- 
tailinir at ten cent>:: Biltmnre and Plaza, retailing at 
two for twenty-five cents, and Wjddorf, retailing at 
fifteen cents. Vahn & McDonnell are local distril)utoi>. 



Monticello smoking tobacct), a high-grade mix- 
lure of John Wagner iV: Soti>. is expanding in sales 
steadily and in a liighly gratifying \olume. Althougli 
no advertising has been done on this mixture, it now 
has a wide distribution in the Mid<lle West and other 
sections of the countrv, 

March 15, 1934 



Trade Notes 



Kool cigarettes, the recently introduced menthol- 
ated cigarette of Brown & Williamson Tobacco Corp., 
are meeting with a good demand here and showing 
substantial and continuous increase in sales. 



Abe Caro, Optimo representative, was in town 
last week visiting the local trade and made Yahn & 
McDonnell offices his headquarters while here. Opti- 
mos are holding their })lace well out in front here. 



Orders continue to roll in to Royalist headquar- 
ters, Orabosky Bros., Inc., North Second Street, and 
the factory is working to capacity in order to satisfy 
the demand, and at the same time preparations are 
going forward for the removal of their factory oper- 
ations to larger cpuirters about April 1st. 



The new Banquet cigarettes, product of Simpson, 
Stud well & Swick, are being distributed here by Yahn 
^- McDonnell and are enjoying a nice sale. The ciga- 
rette retails at five cents each in individual glass tubes. 
Frank Swick paid the local distributors a visit last 
week and was nmch gratified at the progress the new 
cigarette is nuiking here. His company could not sup- 
ply the demand for this brand for some time, but in- 
creased i)roduction facilities have nearly equalled the 
denuind at the present time. 



John Wagner & Sons report that there is a con- 
siderable improvement in the cigar department of their 
business, particularly attributable to the end of the 
prohibition era. High-grade cigars in the top sizes 
particularly have shown a marked improvement in re- 
cent months. Among the particular brands distrib- 
uted by this firm, and which have enjoyed a wide sale, 
are the Don Sebastian, (Arango y Arango) ; Garcia y 
Vega, ((larcia y Vega); Wagner, (John Wagner k 
Sons), and importeil brands. 

J5 




CIGARETTE TAX REDUCTION 

HAT leading cigarette mamifaeturers are join 
iiig in a request to the House Ways and Means 
Commit toe at AVashington for a reduction in 
the tax on cigarettes of from $1.20 to $1.80, 
was revealed at the annual meeting of Liggett & Myers 
Tobacco Co. by Fred J. Fuller, counsel. Factors 
lilvely to })revent a reduction in the tax at this time, 
Mr. FuHer pointed out, are the short time Congress 
is to ho in session and tlie immediate loss of rev^enue 
to tlie (Jovornment. He estimated that the loss in 
Federal income entailed by a cut in the tax would bo 
gradually made up by cigarette consumption. 

According to Mr. Fuller, Kepresentative Vinson 
favors a paring down of the tax on the ground that 
it would enable larger sales and higher j^rices to the 
farmers through increased tobacco consumption. He 
states that as the tax on cigarettes was raised from 
$2.05 to $3.00 at the time the prohibition amendment 
was adopted, to replace the revenue loss on liquor, it 
is now timely to reduce tlie tax. 

In answer to a query regarding the price rise on 
cigarettes in January of this year, J. W. Andrews, 
vice-president, took the occasion to inform stockhold- 
ers of the tendency towards increased competition 
from 10-cent brands. This tendency, he added, would 
tend to be offset as people generally obtain more 
spending money. 




ANOTHER BROWN & WILLIAMSON ADDITION 

UE to increased demand for the products of 
the Brown & Williamson Tobacco Corp., 
ground was broken this week for the erection 
of an additional factory building in Louis- 
ville, Ky. The company already has a large and thor- 
oughly modern plant in that city, and the additional 
factory building will be of brick construction, five- 
story and basement, measuring 66 x 215 feet, thor- 
oughly modern and with the most up-to-date equip- 
ment obtainable. The new buihling will be immedi- 
ately adjoining their present buildings and will give 
the company 80,000 square feet of additional factory 
space. 

The company's brands include Dial, Bugler, 
(rolden Grain, Target and Sir Walter Raleigh smoking 
tobaccos; and Kool, Wings and Raleigh cigarettes. All 
of these brands are gaining in popularity steadilv, 
which has necessitated the building of an* additional 
factory so that production can be increased propor- 
tionate! v. 



AMERICAN CIGAR EARNINGS 

Tlie American Cigar Co., which is controlled bv 
the American Tobacco Co., reports for 1933, as cer- 
tified by independent auditors, net income of $2,666,- 
628 after amortization, Federal taxes, etc., equivalent 
after dividends on the 6 per cent, preferred stock to 
$10.33 a share on 200,000 shares of common stock. 
This compares with $10.56 a share on the common 
in 1932. 



The Congress Cigar Company for 1933 had a net 
loss of $170,971 after taxes, depreciation, interest and 
adjustment of tobacco inventories, compared with a 
1932 profit of $274,228. 




RECOVERY REVIEW BOARD 

OVING to protect small enterprises and pre- 
vent monopoly under recovery codes, -Presi- 
dent Roosevelt on March 7 issued an Execu- 
tive Order creating a National Recovery 
Review Board to investigate complaints that codes 
were so working as to build up monopolies to the det 
rinient of small indei)endent enterprises. The pur- 
})ose of the new agency, it was set forth in the order, 
will be to, ** ascertain and report to the President 
whether any code or codes of fair com])etition ap- 
j)roved under authority of Title I of the National In- 
dustrial Recovery Act are designed to promote mo- 
nopolies or to eliminate or oppress small enterprises 
or operate to discriminate against them, or will permit 
nionopolies or monopolistic practices; and if it finds 
in the affirmative to specify in its report wherein such 
results follow from the adoption and operation of 
any such code or codes; and to recommend to the 
President such changes in any ai)proved code or codes 
as, in the opinion of the board, will rectify or elimi- 
nate such results." 

It was also made known at the White House that 
the President will ask Congress to extend the licens- 
ing provisions of the recovery act for another year. 
These sections of the measure were to apply for one 
year only. They have never been invoked, 'but have 
been held over the head of industry as a threat in the 
event of attempts to violate codes. 



TOBACCO IN ECUADOR 

ECUADOR — While published figures for the four 
government monopolies of alcohol, salt, tobacco, and 
matches, show a substantial sum of revenues collected 
above expenditures, the business of none can be said 
to be actually profitable. The tobar-co estanco lias 
large supplies of tobacco on hand, much of it now unfit 
for use, and is unable to purchase the entire new crop, 
although no other outlet for the products is permitted. 
( American Cfmsul Gcticral IL B. Quarton.) 



Harold Allely is making the rounds among the 
trade in the interests of the products of the Christian 
Peper Tobacco Company, and fast becoming ac- 
quainted in his new field. The Peper ('ompanv prod- 
ucts are well placed in this territorv an«l enjov'u good 
sale. 



Send Two Dollars, with the coupon below to The 
Tobacco World, 236 Chestnut St., Phila., Pa., and 
get your copy twice a month for a year. 



Name 

Street No. 
P. O 



.State 



i6 



News from Congress 

{Continued from Page 6) 




Tkt Tobacco World 



XITIAL figures showing the effect of the de- 
])ression upon conditions in trade and business 
will be issued in the near future by the United 
States Census Bureau. As a result of the in- 
vest igat ion, the first ever to be made by the Govern- 
iiirnt in this field although similar information is com- 
piled periodically for the manul'acturing industries, 
i|i(> ictail tobacco merchants will ascertain just what 
has ha])pened since 1929, not only in the way of store 
riiiployment, but with respect also to sales and buying 
habits. 

By comparison of the figures now being comi)iled 
witli the data of the 1929 census of distribution, it 
will be ])ossible to determine the decrease in business 
volume during the past four years; what kinds of 
i>usiiiess suffered most and what kinds experienced no 
decrease or had an increase; what changes have taken 
place in buying habits, and whether chain organiza 
lions sland deiiression better than independent estab- 
lishments or vice versa. 

The study will also show the changes which have 
occurred in the position of wholesalers, whether there 
has been an increase in direct selling to consumers, the 
extent of reduction in employment in various trades, 
and changes in wages. 

Of considerable importance to retailers, the sur- 
vey will disclose any significant changes in inventory 
or credit instituted bv the various businesses, and the 
proportion of current business sales volume repre- 
sented 1)V sales taxes. 



£t3 Cj) Ct3 

ONCERKS whose violations of the Federal 
Trade Commission Act are disposed of by the 
signing of stipulations that they will no longer 
continue the practices complained of will here- 
nftor be deprived of the protection formerly given 
iliem through the withholding of their names by the 
I'N'deral Trade Commission. Under a new ])olicy 
idopted by the commission, all cases settled by stipu- 
lation will be made a part of the public records. The 
• ^'termination to j)ublish names in such cases follows 
a recent decision of the commission to make ])ublic 
the details of formal complaints charging unfair trade 
practices as they are issued instead of upon final de- 
termination of the case, as was the practice for many 
years. 

Affording a means of correcting unfair methods 
of competition without going through the formal ])ro 
«edure of litigation, the commission's stipulation i)lan 
lias been adopted in more than l.jtK) cases since 192'), 
most of which involved minor abuses. 

The ])rocedure calls for a signed agreement be- 
tween Ihe commission and the respondent in which the 
latter agrees to cease and desist from the unfair prar^- 
tlces complained about, with a provision that shouhl 
iliey l)e resumed the facts as stipulated may be used 
as evidence in any formal complaint which the com- 
uiission might issue. In general, stipulations are ac 
cepted in cases involving general misrepresentations 
in the case of goods in interstate commerce or false 
and misleading advertising. 

March 1$, 1934 




MURIEL 



CIGAR 



Full 
Size 





5^ 



Long 
Filler 



Exceptional cigar 
quality for a nickel 




Other sizes 

Lon(tfellows . . , . 3 for 25<? 

Perfecto* IW 

Aristocrats 2 f or 25< 



Mfd. by r. tOIILLASO CO., INC. 




TOBACCO TRADE ORGANIZATIONS 

TOBACCO MERCHANTS ASSOCIATION 
OF UNITED STATES 

JESSE A. BLOCK. Wheeling. W. Vm FVp^tlH^S 

CHARLES J. EISENLOHR. Fhiladelphi*. Pa \>- p ^!"t 

JULIUS LICHTENSTEIN. New York. N. Y ;...: • vY*"/"^?*^ 

WILLIAM BEST. New York. N. Y Chairman Executire Committee 

MAJ. GEORGE W. HILL, New York, N. Y X-"Sl!! 3!nl 

GEORGE H. HUMMELL. New York. N. Y v'"'^! rf!«I 

H. H. SHELTON, Washington. D. C v- p !! H^nJ 

WILLIAM T. REED. Richmond. Va X!*!:p"! 3!«; 

HARVEY L. HIRST. Philadelphia. Pa Vice-President 

ASA LEMLEIN. New York, N. Y .'"'Ji; ■" nf.!!^^ 

CHARLES DUSHKIND. New York. N. Y Counsel and Managing Directw 

Headquarters, 341 Madison Ave., New York City 

ALLIED TOBACCO LEAGUE OF AMERICA 

W. D. SPALDING. Cincinnati. Ohio V/. " * * S*^** • j*°! 

aiAS. B. WITTROCK. Cincinnati, Ohio Vice-President 

GEO. S. ENGEL. Covington. Ky il!*'J*/^ 

WM. S. GOLDENBURG, Cincinnati, Ohio secretary 

ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS 

JOHN H. DUYS. New York City •i.":\>""E!"-3!«! 

MILTON RANCK, Lancaster. Pa ..Firit Vice- Presiden* 

D. EMlL KLEIN. New York City Second Vice-President 

LEE SAMUELS, New York City Secretary-Treasurer 

NATIONAL BOARD OF TOBACCO SALESMEN'S 

ASSOCIATIONS 

TACK A. MARTIN. Newark. N. J i.V — Vr ^ * ' " ^*' ■ j"! 

ALBERT FREEMAN. New York. N. Y .-First Vice-President 

IRVEN M. MOSS. Trenton, N. J Se<»nd Vice-President 

ABE BROWN. 180 Grumman Ave., Newark, N. J SecreUry -Treasurer 

NEW YORK CIGAR MANUFACTURERS* BOARD OF 

TRADE 

ASA LEMLEIN V>- •'S^'-J"! 

SAMUEL WASSERMAN Vice-President 

THE NATIONAL ASSOCIATIONS OF TOBACCO 

DISTRIBUTORS 

C A. JUST, St. Louis. Mo President 

MAX JACOBOWITZ. 84 Montgomery St., Jersey City, N. J Secretary 

E. ASBURY DAVIS, Baltimore, Md Vice-President 

E W. HARRIS, Indianapolis, ind Vice-President 

JONATHAN VIP(JND. Scranton, Pa Vice-President 

GEO. B. SCRAMBLING, Cleveland, Ohio Treasurer 



EstablUheJ 1886 



"BEST OF THE BEST" 




^^^;±^ A. SANTAELLA & CO. 

Office, 1181 Broadway, New York City 

FACTORIES: Tampa and Kep West, Florida 



OUR HIGH-GRADE NON-EVAPORATING 

CIGAR FLAVORS 

Make tobacco in«lCo«v and smooth In characten 
and Impart a most palatable flavor 

FUYORS FOR SMOKING and CHEWING TOBACCO 

Write for List of Flavors for Special Brands 
BKTUN. AKOMATIZEB. BOX FLAVORS. PASTE SWEETENERS 

FRIES & BRO., 92 Reade Street. New York 



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mw9mm>s/s>m>9JM>9Ji\>m\>9. 



Classified Column 

The rate foi this column it three centt (3c.) a word, with 
a minimum charge of seventy-five centi (75c.) payable 
strictly in advance. 



«ir)iMr?»(ifrsotr«rtr?8WiWW^^ 



POSITION WANTED 



CIGAR SALESMAN COVERING EASTERN PENNSYLVA- 
NIA and Local Territory desires connection. Large following. 
Address Box No. 580, "The Tobacco World." 



Newspaper and magazine advertising executive, thoroughly 
experienced, formerly with local newspapers and agencies, and also 
advertising manager. Position with firm desiring an advertising man, 
salesman or assistant to manager. Knows marketing, merchandis- 
ing and distribution. Salary not as important as opportunity to 
demonstrate actual worth and ability. References the highest. 
Address, F. H. Riordan. 5915 Webster Street, Philadelphia, Pa. 



CIGAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON 
Automatic Machines, wants a position. Also instructs beginners. 
Address Box No. 558, "The Tobacco World." 



FOR RENT 



OFFICE AND FLOORS FOR CIGAR MANUFACTURING OR 
STORAGE — No parking restrictions; good location; low rent; 
freight elevator and loading platform. Will divide. Metals Coating 
Company of America, 495 North Third Street, Philadelphia. 



HAVANA CIGARS 



BEER WITHOUT CIGARS, IS LIKE KISSING WITHOUT 
LOVE— Adopt as your slogan, "Kiss your beer, but love your ci- 
gars." Specially those Havana blended, "Good to the last Puff," 
manufactured by A. Ramirez & Co., Post Office Box 1168, Tampa, 
Fk. Write them for particulars today. 



Tobacco Merchants' Association 
Registration Bureau, JtV^RKcm 

Schedule of Rates for Trade-Mark Services 
Effective April 1, 1916. 



Registration, (see Note A), 


$5.00 


Search, (see Note B), 


1.00 


Transfer, 


2.00 


Dnplioafp Oertifioflfp. 


200 



Note A— An allowance of %2 will be made to members of the Tobacco Mer- 
chants' Association on each registration. 

Note B— If a report on a search of a title necessitates the reporting of more 
than ten (10) titles, but less than twenty-one (21), an additional charge of One 
Dollar ($1.00) will be made. If it necessitates the reporting of more than twenty 
(20) titles, but less than thirty-one (31), an additional charge of Two Dollars 
($2.00) will be made and so an additional charge of One Dollar ($1.00) will be 
made for every ten (10) additional titles necessarily reported. 



REGISTRATIONS 
MELLO-GLO: — 46.296. 1 or all tobacco i>roducts. January 2.^. 10.^4. 
Consolidated Litlio. Corp.. Brooklyn. X. Y. 

RENWICK PARK:— 46.297. I'or ciH:ars. ciparcttcs and tobacco. 
I c'hruary 8. 19.U. F. M. Howell & Ci>.. l<:iniira N. Y. 

TABLE MADE:— 46.299. For all tobacco products. .Nfardi (>, 10.^4. 
W. J. Xcff & Co.. Red Lion. Pa. 

TABLE MAIDS: — 46,300. I- or all tobacco products. March U, 1W4. 
W. J. XeiT & Co.. Red Lion. Fa. 

GAR-V CLUB HOUSE:— 46,301. For cij-ars. I'ehruary 17. 19.M. 
Joe Lcib. L(»s Angeles. Cal. 

VETZEL: — 46.302. I'or cij^^ars. cigarettes and tobacco. March 8, 
1934. R. F. Vetzel. Melbourne, Fla. 



TRANSFERS 

EL PARADO:— 36,662 fl'nited Registrati<»n Hureau). For cigars, 
cigarettes and tobacco. Registered June .1, 191 1, by Julius Bien Co., 
New York. X. Y. Transferred by Ctmsolidatetl Litho. Corp.. 
Brooklyn. X. Y.. Miccessors to the regi.strant, to E, Mueller & Son 
Co.. .Milwaukee. Wis., October, 1916. 

VERMILLION CLUB:— 40,955 (T. M. .\ . 1 ..r all tobacco prod- 
ucts. Registered December M), 1918. by X'ictor Levor. .Attica, Ind. 
Transferred to I.. I). McKin^ie ^S: Co.. Danville, 111., l-'ebruarv 17th. 
19.U. 

SAN RITA:— 46,295. I or cigar>. Registered I'ebruary 21. 19.^4. by 
Cuesta, Rey iS: Co.. iampa. Ma. (This certificate is i>^ued upon 
presentation made to us that the trade name or trade-mark herein 
specified, though apparently not heretofore re^istered in any of our 
Affiliated I'ure.ui-. has been in use !)y Henry 1".. Ackerburg, Chi- 
cago, 111., sitid- 19H.. and transferred to Cuesta, Rev \ Co.. Tampa. 
I'la.. February \h, 19.U.) 



"What a welcome visitor 
The Tobacco World 
must be to wholesalers and 
retailers! 

*'If they are only half as 
interested in reading it as 
we ourselves are, we're ^lad 
our ad is in it regularly" — 

says an advertiser. 



APRIL 1, 1934 



UIBRARV 

BECEIVED 

APR -3 1934 




The importance of attractive and dependable containers for 
fine cigars is recognized by the progressive cigar manufacturer. 

Generally the brands that are increasing their goodwill in this 
present analytical market are packed in the new improved 
AUTOKRAFT cigar boxes. 

Cigar Manufacturers who have not investigated the value of 
the merits and economies of the splendid and inviting package 
may obtain complete details promptly by addressing the 

AUTOKRAFT BOX CORPORATION. 



Phi la., Pa, 
Hanover, Pa. 
Cincinnati, Ohio 



^ _, ^ «w York, Pa. 

AUTOKRAFT BOX CORPORATION Chicago, in. 

Lima Ohio Detroit, Mich. 

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PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA.. PA 



1^ 




WOODEN BOXES 

Are the Only Natural Humidor for Cigars. 



Pack your cigars in wooden boxes and preserve 
their delicate afoma, mellowness and flavor 
right up to the time they are passed over the 
counter to the customer. 

Discriminating cigar smokers prefer to select 
their favorite brand from a wooden box— and it's 
good business to cater to the dealer and con- 
sumer by packing your cigars in wooden boxes. 



/when buying cigars 

I Remember that Regardless of Price 

I THE BEST CIGARS 

I ARE PACKED IM 

\ WOODEN BOXES 




THE TOBACCO WORLD 



Vol 54 



APRIL 1. 1934 



No. 7 




T WAS inevitable tliat, during the long and 
seemingly interminable delay between the 
drafting of the cigar code and its approval, 
there should be criticisms, both inside and out- 
side the industry. The attacks from outside have been 
reported as emanating from Washington and they are 
to the eifect that the blame for the non-oxistence of a 
code at this date should be placed on the shouKlors of 
the cigar people themselves. The inside carping, much 
of which comes into these editorial offices through the 
nuiil and in the course of personal visits from men 
engaged in the various departments of the industry, 
takes the form of objections that the code as submitted 
favors the large manufacturers or the machine group, 
or whatnot. It is a pleasure to us to offer, in rebuttal 
of the many divergent statements, the following words 
of the chairman of the Cigar Code Committee, Harvey 
L. Hirst, on his return from one of his numerous triph 
to Washington last week : 



Ct3 Ct3 CjJ 




TATEMENTS emanating from Washington 
that the long delay in the cigar code is the 
fault of the cigar industry, are entirely unfaii* 
and can be disproved by the records. The 
cigar industry will never have to apologize for its pari, 
and its manner of co-operation with the administration, 
in this undertaking. The advent of the NHA found 
the cigar industry, quite naturally, very much disin- 
tegrated and with widely diversified interests and con- 
ditions. From the beginning and through all my close 
association with this undertaking I have seen mani- 
tt'sted a spirit of unselfishness and a willingness to 
Lcive and take, of which the cigar business may well be 
proud. 



C?3 Ct3 Ct3 




DO not mean that tliese diverging interests 
were easily integrated. The problems were 
too numy and too complex for that. But all 
issues were met courageously, and step by step 
(verv angle was straightened out and attended to. 
There is not and could not be entire satisfaction from 
t'very individual viewpoint. But to all intents and pur- 
l)oses the many opposing objectives were solidified. 
Moreover, all of the various groups made concessions 
for the benefit of the whole, and the code as it finally 
i-merged w^as certainly not dominated by the large 
manufacturers or the s^mall manufacturers, by the ma- 
chine group or the hand group. Jill of these group:^ 
made compromises in the interest of harmony and for 
the purpose of integration. 




HE cigar industry showed this same spirit of 
fair dealing and compromise also in its deal- 
ings with the Administrators. The setbacks 
tliat have been experienced, such as differences 
of opinion between the Agricultural Administrators 
and the XRA, the jockeying by Washington which 
seemingly forced the retailers to accept the mark-up 
instead of the vertical code, the reopening of the con- 
troversy over wage and time provisions, and other un- 
expected checks on the proceedings, are circumstances 
over which the cigar industry, as a body, could not 
have foreseen or prevented, and is not responsible for. 
But the important thing just now is for the merchan- 
dising division of the industry to know that all of these 
adversities are being faced courageously, that right 
now the outlook is reasonably bright for an early and 
agreeable termination of the work in hand, and that 
uny price cutting outbreak at this time would be about 
the worst thing that could happen to the cigar and 
tobacco industry in these, the last stages of its long 
and hard-fought battle to acquire a trade code and get 
going." 

Ct3 CX3 Ct3 



FTRE'S hoping that the next issue of The 
Tobacco World will carry the news of the 

ai)proval of the Code. In the meantime, and 

even if the delay is prolonged beyond that time, 
we earnestly appeal to cigar merchandisers to give 
heed to the plea of the Cigar Code Committee, as 
voiced by Mr. Hirst, to sit tight and not allow them- 
."-elves to become parties to any outbreak of price 
cutting at this time. That is an unmitigated evil al- 
ways. Right now it would be a particularly destructive 
nionkev wrench in the machinerv of recovery for the 
industry. 

Ct3 Ct3 (t3 

T GIVES us especial pleasure to read the Feb- 
ruary withdrawal figures printed elsewhere in 
this issue. For the second successive month 
of the young year there was a decided gain 
for all tobacco products, and we are not going to spoil 
our pleasure — and yours — by any kind of analysis, of 
the cigar figures, for instance, that would minimize the 
impressiveness of the general gains. You will notice, 
of course, the mercurial jump in the large cigarette 
figures, occasioned by the introduction of the eleven- 
inch product, to be cut into fours by the smoker. It 
is one of the features of the tobacco business that 
those in it do not have to wonder or guess how things 
are going. In many another industry a manufacturer 
could put an innovation on the market, and only he 
would know of its effect on the industry generally. 
Everyone else could only guess and speculate. Here 
we know^ almost innnediately from official figures. This 




The TOBACCO WORLD (established 1881) is published by Tobacco World Corporation; Hobart B. Hankms, President and Treasurer; 
Gerald B Hankins, Secretary. Office. 236 Chestnut Street, Philadelphia. Pa. Issued on the 1st and 15th of each month. Subscriptions, avail- 
able only to those engaged in the tobacco industry, $2.00 a year, 20 cents a copy; foreign, $3.50 a year. Entered as second-class mail matter, 
December 22, 1909, at the Post OflSce, Philadelphia, Pa., under the Act of March 3, 1879. 



is a quicker service lliaii the automobile manufacturers 
get from the private companies which compile their 
sales reports from the registrations at state capitals, 
and a more comprehensive one than newsi)aper pub- 
lishers get from Media Records, another i)rivate con- 
cern. If there is anv value — and there decidedlv is — 



in the General Motors research motto, ''Get the Facts, 
or the Facts Will Get You," it would seem that the 
men in the tobacco industry liave, in these official 
monthly figures, an advantage over tliose engaged in 
many other industries, in the imi)ortant matter of 
knowing how to i)lan for the futuie. 



Meet Miss Sellers, Prince Hamlet Champ 




ISS SHLI.KI\S, retail store manager of the I... 
Weinberg I'o., store at i)() S. 2nd St., Avas 
awarded the $25 prize recently olYered by 
Bayuk Cigars, Inc., for the person selling the 
largest number of their new Prince Handet cigars 
(luring a stated period in Philadelphia. In relating lier 
experiences in retailing cigars, Miss Sellers said that 
when she first came into the store they wei*e selling a 
small quantity of cigars and smoking and chewing- 
tobaccos, which she regarded more as a nuisance than 
otherwise. 

She soon began to see the wisdom of selling tlie 
customer larger quantities of all kinds of tobacco 
])roducts, thus having more time to devote to the other 
departments of the store. By carefully learning the 
l^ersonalities of her customers, she soon had them buy- 
ing their chewing and smoking tobaccos by the |)ound 
instead of by the package or plug, and cigars by tlie 
box instead of one or two at a time. 

A little while after entering the employ of L. AVein- 
berg & Co. Bayuk Cigars held a sales conference to 
which retailers were invited. Miss Sellers at first de- 



cided she would not attend as she would i)ro])al)ly be 
the only female present among a crowd of men, })ut at 
the last minute changed her mind and decided to attend 
the conference. 

After a verv illuminating and instructive talk bv 
Mr. Sharrock, local sales manager for Bayuk Cigars, 
the retailers were taken on an inspection tour of the 
big Bayuk factory, and Miss Sellers, who has **IT, " 
and no mistake, was fortunate to draw Mr. Sharrock 
himself for her guide on the tour. Mr. Sharrock care- 
fully explained to her the many different kinds of fine 
tobaccos which are used in all Bayuk products, and 
concluded with a splendid talk on the best methods for 
displaying cigars and also keeping them in first class 
condition. 

After her return to the store the next dav it didn't 

» 

take Miss Sellers very long to re-arrange her cigai* 
department cases and toj) of the case display, and she 
was also ready for her first customer with an excellent 
and intelligent sales talk on the merits of Bavuk 
cigars. And, boy, did she sell them. Well- -she won 
the prize, didn't she? 



Grabosky Brothers in New Plant 




R A BOSKY BROTHERS, nationally known 
cigar manufacturers, have announced that they 
will remove their plant and offices from 21 
North Second Street to ll-i;M5 North Second 
Street, Philadelphia, on Monday, April 2d. This step 
will be taken in an effort to better the \y()rking con- 
ditions of employees as well as to gain additional space 
necessitated by increasing business. The attractive 
new building soon to be occupied consists of five stories 
and a basement, all of which will be utilized by the 
Grabosky firm. The structure has been completely 
renovated and modernized. Fine lighting and many 
new^ conveniences are features. 

Long identified with the cigar industry, members 
of this firm first became widely known as the producers 
of one of the nation's fastest selling cigars. (Jrabosky 
Brothers' new" product — the Royalist cigar — is already 
recognized as an outstanding success and bids fair to 
be one of the nation's leading brands. 



The marked jmblic prefeience for Royalist and 
the subseipient need for greater production in order 
to satisfy it, is among the chief reasons why (Jrabosky 
Brothers came to deem larger quarters imi)erative. 

Benjamin L. (Jrabosky recently identified himself 
with Grabosky Brothers, Inc. He was formerly asso- 
ciated with the G. II. P. Cigar Company, also of Phila- 
delphia. One of the best-known figures in the cigar 
industry, he has been actively engaged in this line since 
19U0. It is his plan to broaden Royalist's market to 
an even greater extent. 

Royalist enjoys solid distribution in many parts 
of the Union and recently entered the New York area, 
where it was accorded immediate acceptance. (Jrabosky 
Brothers are firm believers in the power of tiie printed 
word. They are ])ioneers in newspaper advertising 
having spent millions of dollars in this medium of 
publicity. Their advertisements may be seen regularly 
today in various metropolitan newspa])ers and other 
publications. 



$1,586,156 Paid to 31,541 Tobacco Growers 




ENTAL and benefit payments distributed under 
Agricultural Adjustment Administration pro- 
grams up to March 1 totalled $173,570,549 it 
is shown bv summaries announced bv the Ad- 
ministration today. This distribution was made among 
1,774,431 farmers in 46 states. In addition to these 
payments, the Administration had expended $8,979,933 
on that date for administrative expenses, and $49,- 
841,684 for removal of surplus products. 



The $173,570,549 rental and benefit payments made 
up to March 1 were distributed as follows: $112,349,176 
to 1,030,536 cotton growers; $59,635,216 to 712,354 
wheat farmeis: and $1,586,156 to 31,541 tobacco 



growers. 



Distribution of rental and benefits during the 
month of February increased by $14,576,037. The num- 
ber of farmers to whom jjayments were made during 
the month increased bv IH.3,732. 



N Ews From Congress 




_ -AND 

Federal 



Departments 




VIDENCES of definite economic recovery ai'e 
seen by Treasur}^ officials in the heavily in 
creased tobacco taxes collected during Feb- 
ruary, as comj)ared with the same month last 
year. Receijits from the cigarette tax were at peak 
levels, with collections for the month reaching $27,699,- 
530 against $23,563,756 in February, 1933. Cigar taxes 
also increased, totaling $776,217 against $752,763, and 
receipts from chewing and smoking tobacco were up 
20 per cent., $4,505,410 against $3,920,638. 

Taxes collected on snutT during the month totaled 
^!^597,717 against $479,706 in 1933; cigarette papeis and 
tubes returned $58,964 against $51,564, and miscellan- 
eous tobacco collections were $8,802 against $268. 

Cj3 Cj3 Cj3 



Tk$ Tobacco WorU 



■-^gllTII the support of the Treasury Department 
^Mj behind it, the move for reduction of tobacco 
^^JBl taxes, now under consideration by the House 
Ways and Cleans Committee, is said at the 
Capital to have better chances of success than at any 
time for several years. Hearings on the question of 
tobacco taxes, postponed from March 12 because of the 
tariff legislation, were begun by the Ways and Means 
Committee March 27, before a subconnnittee consist- 
ing of Rei)resentatives Vinson of Kentucky, chair- 
man; Shallenberger of Nebraska, McCormack of 
Massachusetts (Dem.) and Bacharach of New .lersey 
and Woodruff of Michigan (Rep.). 

The subcommittee will investigate all phases of 
the tobacco tax situation, with a view to making a 
report on which the full committee can reconunend 
such legislation as it may deem necessary. 

Approval of the Treasury Department to reduc 
tions in taxes on tobacco products was voiced by Secre- 
tary Morgenthau March 21 when he appeared before 
the Senate finance committee during its final considera- 
1 ion of the new tax bill. 

The Secretary advocated a reduction from $3 to 
$2.70 per l,tXX) inthe tax on cheap cigarettes, expres- 
sing the belief that a marked improvement in the trade 
in these grades would result, so that probably there 
would be no diminution in revenue. The producers r^f 
the cheap cigarettes, he said, are finding it difficult to 
eontinue in business, as the 15-cent brands are crow«l- 
ing the 10-cent product out of the market, and the 10 
per cent, reduction in tax proposed would be of con- 
siderable help to them. 

From a brief statement w^hich he read to the com- 
mittee, the Treasury head, w^ho was accompanied by a 
number of members of his staff to back him up, told 
of the situation. 

\pra t, 1934 




From our Washingtom Bo9eau 6224taeE Buiiomg 

The conmnttee decided to make no change in thm 
measure which it was then preparing to report, but in- 
dicated that it would probablv hold a hearinir on the 
question and if the easing of tlie tax was found advis- 
able an amendment to the bill would be offered by 
Chairman Harrison when tlu* measure eanie up in 
Senate for debate. 

CJ3 Cj3 Cj] 

E(rISLATION designed to protect the revenues 
of states having sales taxes by making possible 
the af)plication of such taxes to sales consum- 
mated as part of an interstate transaction has 
been passed by the Senate and is awaiting the action 
of the House of Representatives. The measure, in- 
troduced in Februarv bv Senator Harrison of Missis- 
sippi, chairman of the Finance Committee, deprive** 
merchandise of its interstate character when entering 
a state in which a sales tax is levied. 

It was declared that shippers of tobacco are using 
the ** original package" doctrine as a subterfuge to 
avoid state taxation. It w^as stated during hearings 
on the bill that in states having cigarette taxes, tobacco 
salesmen solicited business from retail merchants by 
otTering cases of cigarettes delivered from jobbing 
centers outside the state, representing that such pur- 
chases may be made without paying the state tax. In 
many instances the shipments were made in plain car- 
tons and moved by express or parcel post. 

The ])rincipal object of the bill is to defeat any 
sucli subterfuge and to permit nondiscriminatory state 
taxation of interstate shipments. 

Cj3 Cj3 Cj3 

HARGTNG that "each time the spirit of enter 
prise begins to show a little vitality, some new 
political obstacle is throwii into the roadway 
and enterprise is forced to retreat," members 
of the ( Vmsumers' Industries Committee created by Re- 
coverv Administrator Johnson following the recent 
conference of code authorities last month declared 
there is little probability of any improvement in the 
credit situation of the Nation so long as the present 
''legislative uncertainty" continues. 

Holding that a number of measures pendmir 
threaten industry with an ''unbearable burden," 
the committee called ui>on Congress to make knowni its 
intention of ignoring legislation which will handica]) 

(Continued on page 15) 




I 

i 



[>MIA 





BAYUK BITS 

DOLPH SCHAAP, Sumatra tobacco buyer for 
Hayuk Ciirars, Inc., left on the 8. S. Manhattan 
from New York on the 28tli for Amsterdam, 
wliere he will attend the Sumatra sales. He 
is aceomi)anied by Mrs. Schaa]). . . . Charles L. 
Stetlen, Ohio territorial manager, eaHed at head- 
quarters and arranired for additional shipments of 
*' Phillies" to meet the increasing demand for the 
brand throughout his territory. . . . The Star 
Grocer Co., Parkersburg, W. Va., has acquired the 
sale of *' Phillies" for their local territory. . . . 
Eddie Bayuk is en route to Los Angeles via steamer 
to work under the supervision of Territorial Manager 
John J. Snyder as a Bayuk salesman. . . . George L. 
Branzell, territorial manager for Virginia, and his as- 
sistant, G. L..McGreevy, visited the factory on Satur- 
dav, the 24tli. 



WILL ATTEND CHICAGO ROUNDUP 

F. P. Will, executive vice-president of the G. H. P. 
Cigar Co., and H. H. Kynett, of Aitkin-Kynett Co., 
advertising agency, left this week for Chicago where 
they will visit the Chicago distributing branch and 
meet Dave Jenks, who has been covering the north- 
western territorv in the interest of VA i^roducto wnth 
good results. While in Chicago plans will be discussed 
for the spring campaign on El Product o and La Azora. 
Mr. Will expressed himself as much gratified with the 
inmiediate and enthusiastic response of retailers and 
consumers to the newspaper advertising campaign on 
La Azoia, which was released about two weeks ago. 



Yahn & McDonnell are distributing the new 
Vestalite cigar lighter, retailing at $1, with splendid 
results. This new lighter works on the automatic prin- 
ciple, and, like all good lighters, it always works. 



Dave Abrams, formerly local sales manager for 
George Ziflferblatt & Co., is now connected with I. J. 
Abramson, tobacco distributor, of South Fifth Street, 
and is promoting the sale of Natural Bloom cigars in 
this city through that distributor. 



Trade Notes 



Joe Banker and Barton Lendein, of M. Sacks ^ 
Co., New York City manufacturers, were in town last 



week visiting the trade. 



Ben Lnmley% local Beau Brununel, and genial rep- 
resentative of the Garcia y Vega factory in Tampa, is 
spending some time among local retailers and increas- 
ing the distribution and sah^ of his l)rand here. 



B. C. .Tessa, eastern representative for Heine's 
Tobacco Company, was in town last week working on 
Heine's Blend, distributed here through Yahn & Mc- 
Donnell, with good results. 



The Widener Building stand of Yahn & McDonnell 
is displaying the new Douglas Air Cooled pipe in such 
a way that it is attracting attention and resulting in 
a good volume of sales. 



(/harlie Bobrow returned from a trip through New 
York territory last week, and after spending the week- 
end at home, left on Monday for northern New Jersey 
territory. 



Harry Tint, 1420 Chestnut Street, is displaying 
the new Golden Wheel cigar lighter, a product of Her- 
man Ledderer & Co. This lighter is very attractive 
and retails for $L 



Steve Hirsh, of the D. Kmil Klein Co., was a 
visitor at Yahn & McDonnell headquarters last week, 
and expressed himself as highly pleased with the dis- 
tribution and sale of Haddon Hall cigars here. 



Dorsey M. Worley, who has represented Otto 
Eisenlohr & Bro. in eastern Pennsylvania for a period 
of thirty years, has announced that he has severed his 
connections with that concern and will open his owm 
jobbing house in (^amp Hill, Pa., featuring pipes and 
the nationally known brands of cigars. 

Tk€ Tobacco WorU 



Musings of a Cigar Store Indian 



By Chief "Young-Man-Smoke-Cigars" 





KHK are some more extracts from John L. 
Morrison's article, "The Passing of the 
Wooden Indian," in the October, 1928 issue of 
Srribncr's : "In the fifties there were three out- 
standing men in the tobacco business in New York: 
Peter ijorillard, D. H. McAlpin, and Edward Hen. 
Lorilhnd, a Fiench Huguenot, established the first 
1ol)acco-factory in this country, a small snuff-mill on 
ihe Bronx River, 'a few miles above New York.' He 
iiad a store at 42 Chatham Street and later at 60 
Wooster. Featuring snutT and then, one hundred and 
ten years later, *plug' tobacco, this concern had no need 
nor ])lace for wooden Indians. 

CS3 Cj3 CJ3 

OKILLARI) and IMcAlpin are famous names; 
Kdward Hen is unknown, but for three decades 
this vibrant personality was a familiar and a 
striking figure. Born in Alsace; emigrant at 
twenty, in 1837; selling cond)s, toys, and toilet articles 
in New York streets during the day ; making the deliver- 
ies at h(»mes in the evening — in 1825 he was going 
strong in the tobacco business at 2 Liberty Street, later 
and for seventeen years at 23 Liberty. In 1856 he ad- 
vertised 'Indians,' the first advertising of its kind in 
the scoi)e of my research. The year 1871 found him at 
4.) Lil)erty, a shabby five-storied brick building opposite 
tlie post-office. There Hen assembled the largest con- 
gress of wooden braves the world has ever seen or ever 
will see. An octogenarian cigar-nuiker tells me it was 
an awesome sight, these hundreds of wooden red men 
with their fresh war ])aint. 

Ct3 Ct3 Cj3 

KX was uni<iue. One faithful over-cloak trailed 
at his heels for his last twenty-six years. He 
was a bachelor and took his three nephews as 
aj)prentices. Hen permitted each nephew to 
run the ])usiness a year, with the net result thai at 
I ncle's death everv nephew was cut otT without a cent. 
As I'nch^ left more than $1,500,000 in 1887, when a 
dollar was a dollar, that was some cut off. It was no 
I ('flection on the nephews; it was just P]<1. Hen's way. 

CS3 Cj3 Cj3 





IS subsistence budget was twenty-five cents a 
day. He once said his breakfast cost was eight 
cents, except that when he used butter on the 
single slice of bread or roll the cost of high 
living rose to ten cents. Hen's only luxury was snulT. 
lietween his intense frugality and his remarkable busi- 
ness acumen he became a factor in the financial w^orld 
and Ins was a familiar figure in Wall Street, usually.at 
Yermilye & (V)mpany*s or J. P. Goodheart & Com- 
panv*8, his favorite brokerage houses. Just to men- 
tion* that he once lent Joy Cooke & Company $5(K),000 

AprH t 1934 





cash, and only two weeks before their historic failure 
got his money back, is enough to say for both the 
financial standing and the alert mind of Edward Hen. 

^bA^ ^-B^ ^bA^ 

Cj3 Ct3 Ct3 

Va slept in his store and hoped he would die 
there — and he was found dead back of a 
counter. He had a superstitious aversion to 7 
and died in 1887— 'Old Man Hen Is Dead^ was 
the lie raid's headline. Possibly his most picturesque 
incident was his once tardv arrival for the Staten 
Island ferry-boat. The crew was obdurate to his signs 
and shouts as he ran across Battery Park. As the 
guard-chain met him amidships and threw him back on 
the stone platform, he cursed the boat and crew. And 
the boat's boilers promptly blew up — this by oral tra- 
dition. 

^^^^^^A a^^^^^B ^^^^^^B 

CJ3 cp crj 

FOURTH name in the hevdav of the wooden 
Indian was William Denmth & Company, 801 
Broadway, who dealt chiefly in pipes and in 
tobacconists- supplies. So completely has the 
wooden Indian vanished that no one in that concern 
(just prior to the recent change of o^\^lership) could 
recall or tell from records when Indians, if ever, formed 
a staple line of their business ; but Leopold Schwager, 
of Brooklyn, still alert and merchandising the weed in 
the Borough Hall district, remembers well when he 
sold Demuth's Indians as an important side line. 
Samples w^ere impossible, and prospects were showTi an 
attiactive illustrated catalogue with^ descriptions, 
l)rices, and the latest discounts in XXX chiefs and 
t'xtra special Pocahontases (or whatever the plural 
may be). 

Cj3 Ct] Ct3 

R. SCHWAGER is my sole find as a distributer 

of wooden Indians to eager tobacconists and 

admiring public. No evidence of a factory has 

come to light nor information regarding the 

methods dealers used to acquire and replenish stocks. 

The metal Indians which came on later and disputed 

witli the wooden tribe for possession of the sidewalks 

of New York and elsewhere were certainly cast from 

standardized moulds, but as to where and when and 

liow and by whom history renmins dark and silent. 

Cj3 Ct3 Cj3 

OODEN Indian carvers were not addicted to 

hall-marking their product by symbol, 

initials, or name; but in all probability the 

first wooden-Indian making in this country was 

done bv ship-carvers, then a distinct calling. There 

were not manv of these carvers, only five in New Y'ork 

in 1857. 





1 




Ill AT eigar-staiid Indians wero allied with the 
sliip-figurohoad industry is strongly ovidonced. 
An Indian in the Historical Society Museum, 
Reading-, J*a., was a tiuurehead on a slii]) when 
])urchased at Philadelphia hy diaries Hernheiser and 
made a landlubber brave. The woikmanship and some 
peculiarities of this figure suggest the handicraft of 
William Kush, who was the foremost sculptor of Phila- 
delphia, if not of the entire country in Revolutionary 



davs and later. His figureheads were world-famous. 
The tradition that Kush, Samuel Mac Intire, and other 
fiuurehead makers ])ut chisels to ])ine and carved 
wooden Indians is wholly believable. Further research, 
I believe, will show them caught with the wooden goods. 
A wooden Indian in those days was a serious form of 
commercial art, not *])ro])erty' corpses for collegiate 
travesties nor sul)ject of raucous laughter by those 
denied education in its higher forms." 



Cigarette Outlook for 1933 

Some Rough Estimates of Probable Results 




OW that all of the leading cigarette manu- 
facturers have rei)orted results of operations 
for last year, it is possible to make some rough 
estimates of probal)le results for this year. A 
close appraisal of ea minus ])rosi)ects for 1!K*U is ren- 
dered esi)ecially ditlicult by such new factors as eiTect 
of the code on labor costs, et!*ect on raw material costs 
of the agreement between tobacco manufacturers and 
the Secretary of Agriculture concerning i)rices, and by 
imposition of ])rocessing taxes at the rate of 4c i)er 
pound of tobacco used. The tendency in each instance 
will be toward increased costs of ])roduction. Another 
factor which is always of considerable uncertainty is 
the varying ex])enditures for advertising — a big item 
in the cigarette industry. We expect a sizable increase 
in such expenditures in 1934. 

On the favorable side of the picture is the increase 
in prices of cigarettes from ^o.fjO i)er thousand to $().!() 
early in January of this year. From these i)rices must 
be subtracted- trade discounts and Federal excise taxes. 
We have ])repared a tabulation which shows the ap- 
proximate value to manufacturers of cigarettes ])ro- 
duced from 1927 to date together with our jireliminary 
estimate for the current year. 

E.std. Avg. Price EsM, Value 
ProfJuctiou per 1000 after to Mfrs. 
(Bdlunis) Taj d-I)isrts. 



1927 
1928 
1929 
1930 
1931 
1932 
1933 
1934^ 



97 
10(5 
119 
120 
113 
lt)4 
112 
120 



^2AU 
2.39 
2.37 
2.64 
2.83 
3.04 
1.90 
2.3() 



$2^7 

253 

282 

316 

321 

3ir) 

212 
o^•> 



•Advance estimates and assuming a continuation 
of present prices. 

The last column in the tabulation a))ove represents 
our estimate of the value of cigarettes produced, after 
subtraction of Federal excise taxes and trade discounts. 
From these figures must be subtracted: (1) the cost of 
raw tobacco; (2) production and distribution costs; (3) 
advertising expemlitures ; (4) interest on funded in- 
debtedness, if any; (.')) Fcdcial income taxes. The 
balance remaining is availalde to stockholders. 

We have arbitrarily assumed a ])robable increase 
in cigarette production for 1934 ecpiivalent to that 
shown in 1933 over the previous year. In this connec- 
tion it is interesting to note that iiroduction in January 
of this year was higher than for any cch* responding 

8 • 



month on record and exceeded the production for 
January 1933 l>y 33 per cent. With cigarette prices at 
their present level and assuming a ])roduction of 120 
billion cigarettes for this year, manufacturers' sales 
will increase by about s|;()0,o6o,000, after trade discounts 
and taxes. Roughly 90 per cent, of this will go to the 
four leading cigarette manufacturers. 

The importaiico of such an increase in income from 
cigarettes is well illustrated by the fact that aggregate 
net profits reported by the four leading manufacturers 
for 1933 were a])proxinuitely $58,000,000. Of this 
amount $r),000,000, reported by Reynolds Tobacco Com- 
jiany, rei)resented ])rofits from the sale of treasury 
stock and $4,000,000 si)ent for advertising was i)roperly 
chargeable to the i)revious year. Making allowance for 
these items, total net profits of the four largest manu- 
facturers were approximately $49,000,000. The ex- 
pected increase in sales income from cigarettes this 
year is therefore greater than the total net ])rofits re- 
]K)rted last year. Increased numufacturing and opera- 
ting costs will of course reduce substantially the 
amount carried through to net profits. 

We estinuite that the cost of tobacco for the manu- 
* facture of 120 billion cigarettes this year as compared 
with 112 billion ])roduced last year, including process- 
ing taxes, will be increased by roughly $20,000,0(K). It 
ai)pears that wage rates in the cigar and cigarette in- 
dustry were increased close to 8 |)er cent, under the 
code. But, owing to the very definite tendency to in- 
creased efficiency in recent years, we anticii)ate no 
greater increase in total wage jiayments for 1934 than 
in production. In fact, wage payments in the five 
months ending with January, 1934 showed a gain of 
only .') ]>er cent, over the jirevious year, whereas cigar- 
ette i>roduction was uj) 14 per cent, and cigar ])roduc- 
tion slightly ahead. Any further saving on wages 
through increased operating efficiency will be almost 
if not entirely eliminated. Any definite estimate of the 
probable increase in advertising expenditures for the 
year is frankly a guess, but we would not be surprised 
if such expenditures exceeded those of 1933 by $10,(WX),- 
0(X). 

We conclude that the ])robable increase in net 
l)rofits to the tobacco nuuiufacturers from 1934 cigar- 
ette sales, unless further price advances are made, will 
api)roximate $25,(HM),(K)0. This is etpjivalent to alwut 
50 |)er cent, of net profits reported by tlie four leading 
manufacturers for 1933. 

Estimates, substantiated by reported earnings, in- 
<licate that Liggett & Myers materially improved its 
l)osition in the cigarette trade during 1933. Without at- 
tempting to forecast changes in the relative trade posi- 

Tlu Tobacco WorU 



HEAR THE CAMEL 
CARAVAN WITH 






Casa Loma Band 

Delights Fans 

Have you heard the hit show of the air— The Camel 
Caravan? What a show! What a cast! 

COLONIL STOOPNAOll and lUDO- who have pan- 
icked radio fan« from coast to coast bring still greater 
'Hhings and stulTto listeners on The Camel Caravan. 

CONNII lOSWIU'S vibrant. ..vivid. ..appealing con- 
tralto voice will thrill you...with the beautiful songs 
of the past..Jind the pleasing, lilting melodies of the 
current **hit*' twies. 

CASA LOMA 0«CMIST«A - recently voted by fans 
throughout the country as one of America's most 
popular bands, continues to charm listeners with its 
smooth, unusual rhythm and personality music. 

So listen for the strains of the Casa Loma theme 
■ong, **Smoke Rings," light up a Camel, and hop 
aboard The Camel Caravan for 30 minutes of un- 
alloyed enjoyment ! 

...^.. ■•.■a ^^*rj T-«d.y -»d Tl.ur.d., .• lO P.M.. E.S.T.-9 P M.. C.S.T.- 
fUNE INI • 9M^ M.S.T.-7 P.II.. PJ.T. .^.r WABCUC.I.»bi. IN^wrk. 



AlOVI YOU SEf 

an exclusive portrait of 
Colonel Lemuel Q. 
Stoopnagle and Budd, 
relayed to this publica- 
tion by thought wave! 




GLAMOROUS CONNIE 

At the left is little Connie 
Boswell...whose lovely 
deep contralto voice has 
made millions of radio 
friends for her! 



CopyrlKht. 1934. 
B. J. Btfyiiukls Tobacco Company 



AprU I, igs4 



tions of the different companies for 1934, we have dis- 
tributed the probable increase of $25,000,000 in net 
income between the four leading manufacturers on the 
basis of their estimated 1933 production. The results 
on anticipated per share profits are shown in the follow- 
ing tabulation which also includes per share profits for 
1932 and 1933. 









Est. 




1932 


1933 


1934 


American 


$8.4fi 


$3.00 


$5.00 


Lorillard 


2.02 


0.89 


1.50 


l.iggett & flyers 


Q.So 


4.84 


7.00 


Kevnolds* 


3.77 


1.22 


2.00 



* The 1932 figure includes 40c ])er share for ad- 
vertising appropriations not actually used while the 
1933 figure has been adjusted downward by a like 
amount plus 50c for non-operating income. Earnings 
reported bv the companv were $3.37 in 1932 and $2.12 
in 1933. 

It is entirely conceivable that further price ad- 
vances will be announced during the year. Any such 
action would cause sharp upward revisions in our earn- 
ings estimates, since increased costs have already been 
taken into account in arriving at the 1934 estimates. 

In regard to the possibility of further i)rice ad- 
vances, it is worth mentioning that Reynolds, the only 
one of the big four not exjiected to cover its dividend 
reipiirements in 1934, has in past years been the leader 
in jjrice revisions. With 1934 earnings expected to fall 
somewhat short of dividend requirements and costs 
rising, it may be that Reynolds will again see fit lo lead 
the way in initiating further cigarette price advances. 

From a financial standpoint all the leading cigar- 
ette manufacturers are in strong position. On De- 



cember 31, 1933, the relation of current assets to cur- 
rent liabilities for the different companies was as 
follows : Liggett & Myers 33 to 1 ; Reynolds Tobacco 
2H to 1 ; Lorillard 24 to 1 ; and American 24 to 1. In 
each instance cash and securities together far exceeded 
total current debts. Cash and marketable securities 
reported by Liggett & flyers at the year-end totaled 
about 14 times total current debts and was sufficient for 
more than 7 vears' interest and dividend pavments at 
])revailing rates. Reynolds had cash equivalent to 
about 8 times total current debts and sufficient for one 
and two-thirds years' dividend requirements. Loril- 
lard 's cash was also about 8 times total current debts 
and sufficient for almost 5 years' interest and dividend 
reijuiremonts. American Tobacco had cash and mar- 
ketable securities equivalent to six times total current 
de])ts which was in excess of one year's dividend re- 
quirements. 

It is obvious that each of these companies is in 
sufficiently strong financial position to pay out a large 
portion of earnings in dividends. Each, in fact, ])aid 
more than was earned in 1933. With improvement in 
])rospect for the current year, we anticipate a continu- 
ation of payments at current rates. 

With cigarette production expanding, prices hav- 
ing been recently increased, and with all the leading 
manufacturing comi)anies in extraordinarily strong 
financial jwsitions, we regard their stocks, now selling 
at prices offering high yields, as among the more at- 
tractive investment issues. They should be retained. 

The foregoing analysis of the outlook for cigar- 
ettes is reprinted, hif permission, from fhr Brook mire 
Analyst, issued by Bronkmire, Tne., a New York firm of 
investment eonnselors and administrative economists. 



How Tobacco Reduction Plan Is Working 

275,000 Growers Expected to Take Part in 1934 Program 




OBACCO growers had been over-producing for 
a nnm])er of vears with the result that stocks 
])iled up in warehouses while returns to 
farmers sank lower and lower, states a report 
on agricultural adjustment by Secretary of Agriculture 
Henry A. Wallace, made public on March 26. The re- 
port points out that receipts from the sale of all types 
of tobacco had declined from approximatelv $286,()(KJ,- 
000 in 1929 to $107,000,0(K) in 1932. During the period 
in which returns to growers had declined so drastically, 
the manufacturers of tobacco products were able to in- 
crease their profits. Total profits of 52 leading tobacco 
manufacturers, according to the report, were $14(),(K)0,- 
000 in 1932 compared with $134,000,000 in 1929 and 
$76,000,000 in 1932. 

** Obviously the tobacco grower was not receiving 
an equitable share of the tobacco consumers' dollar," 
it is pointed out. **When the situation was examined 
in detail, it was found that large stocks of practically 
all types of tobacco had accumulated for one reason or 
another during the last few years and the need for a 
crop reduction program was evident." 

The first tobacco adjustment program to be in- 
augurated was designed to bring about a reduction in 
the 1933 crop of cigar tobacco. This jirogram will be 
continued in 1934. Adjustment programs for the other 
types of tobacco were inaugurated to bring about a 
reduction in 1934 production. 

10 



Approximately 275,000 tobacco growers are 
expected to take part in programs to adjust 1934 
tobacco production. Rental and benefit payments for 
reducing the 1933 and 1934 crops will total around $40,- 
740,000. 

In order to increase growers' returns for their 
1933 crops, marketing agreements between the Secre- 
tarv of Agriculture and the domestic buvers of tobacco 
other than cigar types were negotiated and i)ut into 
effect. The marketing agreements for the 1933 croj) 
were to supplement the 1934 tobacco reduction pro- 
grams. -Marketing agreements were negotiated for 
ilue-cured, Burley, fire-cured, and dark air-cured to- 
baccos. 

As a result of the marketing agreement and ad- 
justment program for flue-cured tobacco, the 1933 crop 
sold on the market for prices which brought growers a 
much higher return than did the 1932 prices. The 
estimated total value of the 1933 Hue-cured crop, ac- 
cording to the report, is $115,0tM),000 compared with 
$44,0(X),000 for the 1932 crop and $56,000,(XK) for the 
1931 crop. 

Total income from Burley tobacco during the cur- 
rent marketing season will be fully $55,0()0,0(K). The 
income received from each of the past two Burley crops 
was $39,000,000. The report shows that comparable re- 
sults have been obtained for growers of other types of 
tobacco. 

Tht Tobacco World 




AprU I, 1934 



All Tobacco Products Increase in February 




HE following comparative data of tax-paid 
products, indicated by the monthly sales of 
stamps, aie issued by the Bureau. (Fij»:ures 
for February, 1934, are subject to revision 



until ])ublished in the annual report) : 



Products 
Cigars (larg-e) : 

Class A Xo. 

Class B Xo. 

Class C Xo. 

Class D Xo. 

Class Ya Xo. 

Total 



-Fehruary- 



1934 

261,955,230 

1,828,450 

33,175,868 

2,035,355 

219,177 



1933 

246,990,730 

2,179,483 

34,504,660 

3,418,052 

337,180 



299,214,080 287,430,105 



Cio^ars (small) ....Xo. 
Cig'arettes (large) .Xo. 
Cigarettes (small) .Xo. 
Snuff ,manuf act ured . lbs. 
Tobacco, m a n u - 
factured lbs. 



21,419,160 17,980,107 

27,254,800 203,601 

9,167,641,657 7,853,997,217 

3,320,649 2,665,037 

25,030,055 21,780,898 



Tax-paid products from Puerto Rico (not included 
in above statement) were as follows: 

— February — 

Produrfs 
Cigars (large) : 

Class A Xo. 

Class B Xo. 

(^lass C Xo. 



1934 

2,658,200 

1,900 

84,900 



1933 

2,217,185 
14,750 
36,830 



X0T9.1 • ••«•««•• 

Cigars (small) . . . .Xo. 
Cigarettes (large) ..Xo. 
Cigarettes (small) . .Xo. 



2,745,000 2,268,765 



250,000 

30,000 

2(K),000 



254,000 

30,000 

235,000 



Tax-paid products from the Philippines (not in- 
cluded in above statement) were as follows: 

— February — - 

Products 
Cigars (large) : 

Class A Xo. 

Class B Xo. 

Class C Xo. 

Class D Xo. 

Class E Xo. 



1934 

20,229,085 

2,180 

16,380 

100 



1933 

12,673,220 
25,840 
19,726 



10 



Total 



20,247,750 12,718,796 



Cigarettes (lari^-e) ..Xo. 200 625 

Cigarettes (small) . .Xo. 123,160 92,940 

T <» b a c c o , m a n u - 

factured lbs. 24 

Internal Revenue Collections for February 
Sources of rereuue 1934 1933 

Cigar- $776,21 7.37 5^752,763.76 

(^iurarcttes 

8nutT 

Tobacco, chewing a n d 

smoking 4,505,409.96 

Ciiraretto ]> a p e r s and 

tubes 58,964.82 

Miscellaneous, r e 1 ating 

to tobacco 8,802.49 



. 27,699,530.45 23,563,755.90 
597,716.88 479.706.74 



3,920,637.83 

51,564.52 

268.53 



Total Withdrawals for Previous Februaries 



1920 593,832,200 

1921 496,724,482 

1922 447,225,986 

1923 507,266,094 

1924 498,796,313 

1925 451,562,278 

1926 451,204,147 



1927 441,695,730 

1928 453,605,097 

1929 437,476,207 

1930 426,521,773 

1931 362,838,747 

1932 347,728,648 



Processing Tax Returns 

Collections from ])rocessing and related taxes pro- 
claimed by the Secretary of Agriculture under autlior- 
ity of the Agricultural Adjustment Act ( l^ublic — Xo. 10 
— 73d Conii:ress), approved ^lav 12, 1933. 

Total 
from July 1, 
Month of 1933 (Fiscal 
Commodity February, 1934 year 1934) 

Tobacco, (tax effective Oc- 
tober 1,1933) 

Processing tax $2,169,984.47 $7,598,898.19 

I m port compensating 

taxes '. 14,464.49 

Floor tax, other t h a n 

retail dealers 12,583.77 

Floor lax, retail dealers 3,743.56 



92,174.85 

1,799,161.80 
237,814.03 



Total, tobacco $2,200,776.29 $9,728,048.87 



AXTON-FISHER TOBACCO CO. 

Axton-Fisher Tobacco Co. reports for 1933, as 
certified by independent auditors, net profit of $1,689,- 
663 after charges and Federal taxes, equal after divi- 
dends on the 6 per cent. j)referred stock and under the 
participating provisions of the shares to $17.02 a share 
on 45,485 shares of class A connnon stock and $7.21 a 
share on 112,012 shares of class B common stock out- 
standing at the end of the vear. This compares with 
net i)rofit in 1932 of $1,416,952 equal to $14.63 a share on 
45,500 shares of class A common and $6.25 a share on 
111,900 shares of class B common. If a|)])lied directly 
to tiie class A stock after deducting j)referred dividends 
the 1933 net ])rofit would show $34.80 a share on the 
class A, against $29.86 a share in the jjreceding year. 



PORTO RICAN AMERICAN TOBACCO CO. 

Porto Rican American Tobacco Co. t'or 1933 re- 
])orts net loss after taxes, depreciation and interest, 
$161,045, including $240,000 dividends received from 
Congress Cii^ar Companv, Inc. This compares with net 
loss of $102,787 in 1932, including $240,0(H) dividends 
received from Congress Cigar and $31,860 received 
from Waitt k Bond, Inc. 



TOBACCO PRODUCTS EXPORT CO. 

Tobacco Products Kxport Co. for 1933 shows net 
profit of $65,063 after taxes and charges, equal to 14 
cents a share on 458,100 shares of capital stock, ex- 
clusive of 14,400 shares held in th<' treasury. This 
comjmres with $46,407, or 10 cents a share, on 459,300 
shares in 1932. 

n# Tf^focco WoHi 



irB «•■« 



the 






form 



© ,834 ■■ C. 1^ 



BAYUK BULLETIN 




Wl DO OUR MM 



VOLUME II. 



APRIL 1, 1934 



NUMBER 5 



PHULOFAX 

mie Retailer's Friend) 

SAYS 

\ SIGN UP 
a\ OR SHUT UP! 




Dear Folks: 

If, as a member of the 
Cigar Industry, I believe 
, , that the Cigar Industry 

"is eoin? to the dogs," don't I virtu- 

uiJdoV'- And doesn't It prove that 
fani thinking more about Komg to 
the dogs than I am thmkmg about the 
Cigar l>''lustry? Well, if want to 
Kotho dogs' O. K., but If I don't 
% not start doing somethmg about 
the CiKur Industry? 

AND inasmuch as I don't want to 
eo to the dogs and even if I am only 
5Se single little individual, by gad, 
m going to do my damdest to see 
hat th( Cigar Industry doesn't go 
here either and, by gad, once again, 
am Roing to do my level best to help 
tLr the Cigar Industry to bnghter 
and better channels. If that s bgo- 
tism, charge it to Egotism! 
There's l)een the trouble in the past 
as individuals in the Cigar In- 
dustry, we figured ourselves helpless 
. . . what can just one person do? 
And so nothing was done. When four 
or five of these cigar industry individ- 
uals got together, what did they do? 
Chatter — chatter — chatter! We 
ought to do something about the cigar 
industry . . . Yes, gentlemen. WE 
oueht to do something about it. Ana 
then what? NOTHING! 

Since old Man Adam first rolled a 
dear out of a fresh, fragrant fig leaf, 
millions of men have thought about 
the very principles back of the L. a. a. 
and eighteen billion words have been 
spoken about the very principles of 
the C. B. A. and not one particle 
of action to get going on the very 
principles of the C. B. A. has been 
exercised. ..^ 

The Cigar Industry as a composite 
association of all people in the Cigar 
Industry has done nothing, simply 
because each member of the Cigar In- 
dustry has done nothing — each niem- 
ber in the Cigar Industry has been 
waiting and waiting and waiting for 
the "Industry to do something, and 
the "Industry" could do nought be- 
cause the individual as an integral 
part of the Industry did double 
nought ! , .,, 

Now, the C. B. A. will get the "In- 
dustry' to do something" if each and 
every member of the Industry joins 
and supports the principles of the 

C- fi- A- 

This column is uncen sored by any- 
one—therefore I want to say that any 
member of the Cigar Industry who 
does not join and support the C. B. A. 
is not a worthy member of the In- 
dustry. 

I am for the Cigar Industry; I am 
for tht C. B. A. and even if I didn t 
have a million other reasons, I'm for 
the C. B. A. because I am for myself 
as a member of the Cigar Industry. 

No one in the Cigar Industry can 
afford NOT to join the C. B. A. 

Sincerely, 



C B A FORMED TO 

BOOST CIGARS 

Association to Popularize Cigar Smoking 
Opens Membership Drive 



"We must all hang together, or we 
shall all be hanged separately," said 
wise old Ben Franklin seeking to stif- 
fen the courage of his more timid 
compatriots at the time of the Ameri- 
can Revolution. 

Somewhat the same crying need of 
real cooperation exists throughout the 
Cigar Industry today. It's not that 
certain cigar manufacturers are not 
making money. It's not that there is 
any real danger that the cigar busi- 
ness will dry up and blow away. ^ But 
1 this fact remains — and it can t be 
' laughed off — cigar consumption has 
I not increased proportionately with 
I population in this country. 

The Cigar Industry is not forging 
ahead as it should by any means 
That is a plain fact, which it would 
be foolish to deny. The only questions 



Principles of C B A 

The principles of CBA may be 
briefly summed up as follows: 

"We propose to persuade, educate 
and in a measure, obligate everyone 
who sells cigars to smoke cigars — 
and not only to smoke cigars them- 
selves, but to make new cigar smok- 
ers whenever and wherever they 
can." 

Simple? Nothing could be simpler. 
Effective? Yes, if everybody who 
benefits pecuniarily from cigar smok- 
ing will put his shoulder to the wheel 
by joining CBA and carrying out its 
principles. 

You remember the old chestnut 
about the restaurant proprietor, who 
always went across the street for 
lunch? There's too much of that same 




MEMBERSHIP CARD 

Cigar Boosters' Associadon 
MEMBER : • • • • 

Please type or print name on this line 
I pledge myself to adhere as strictly as is humanly possible to 
the stipulations on the other side of this card and herewith enroll 
myself as a member of the Cigar Boosters' Association. 



Name F>"" ISame. 

Mailing Address 



[All membership registratiom to be filled in and signed in duplicate. 

I All ™^';°;;;'"» ;/ 5, ., ^ .^er to: Cigar Boosters' Association, care 
^Z^'tZJcoUkV^US Jloitltret New Yort, N. Y. No dues or financial 
IbligaUon o? any kind; but if you can spare a quarter to cover badge and 
postage, send it along with application. 1 



thus serving as a living example in 
this respect to my fellowmen. 

2. INFLUENCE— I will expect ob- 
servance of the above also from 
those who do business with me or 
seek my patronage, and I will let 
them know that I expect it. 

3. PROMOTION— I will make new 
cigar smokers inside and outside of 
the cigar business, wherever and 
whenever the opportunity offers — 
and I will make such opportunities. 

4. PRIDE— I believe that a good 
cigar adds to the sum total of 
human happiness and I am proud 
of the product I sell; I make my 
living from the cigar business and 
I vdll be loyal to it. 

5. UPLIFT — I am forever done with 
crepe-hanging and complaining, 
and henceforth and hereafter will 
spread only the good and the glad 
tidings of cigar smoking and the 
cigar industry. 

6. INSIGNIA— As far as may be 
practicable I will wear constantly 
our badge of membership on my 
coat lapel. 

How About You Joining CBA? 

The membership dues are nothing a 
year. But each member is asked to 
contribute twenty-five cents (if he can 
spare it) to cover the cost of the badge 
and postage. But if he can't spare the 
quarter, he's welcome anyway. It's 
men, not money, that CBA wants. 

The Bayuk Bulletin endorses CBA 
wholeheartedly, and pledges its sup- 
port lock, stock and barrel. Were we 
to do any less, we would be defaulting 
on our own preachment and practice 
of years. 

We earnestly urge every retailer, 
every jobber, every cigar salesman, 
every cigar factory employee— every- 
one even remotely connected with the 
Cigar Industry to join. It's their fight 
and ours, their bread and butter and 
ours. If we don't go into this thing 
body, soul and breeches, we deserve 
to see the cigar follow the horse and 
buggy into that dusty limbo where 
are stored the quaint old customs of 
our fathers. 

Anyone who thinks that thousands 
of intelligent, alert men working to- 
gether with the single purpose of 
bringing the cigar back into its own, 
can't do it — Well, he's the same citi- 
zen who looked at the horseless car- 
riage and said: "They'll never make 
the dang thing go." 



at issue are: Shall the Cigar Industry 
do an>'thing about it or not? And if 
anything— what? 




'4moriat*d wUk BAYUK OGARS, INC., PkiU. 



CBA Answers that Question 

This Association has decided that ' 
the Cigar Industry shall do something 
about it. 

In discussing ways and means oi 
putting new life into the Industry, 
many plans were suggested, among 
them the raising of a half million 
dollar fund for advertising and propa- 
ganda to popularize the smoking of 
cigars. ^ 

But finally all the various schemes 
were discarded in favor of an aston- 
i ishingly simple and inexpensive plan 
' that cannot fail to be inimensely suc- 
cessful, provided— provided it receives 
the wholehearted support of a large 
majority of those who gain their live- 
lihood, wholly or in part, from the 
manufacture or sale of cigars. 

The practical application of the 
plan has been entrusted to a newly 
formed organization called the Cigar 
Boosters' Association, or* U B a. 



attitude in the cigar business. It is 
not inconceivable that there are 
enough non-cigar smokers in the cigar 
and affiliated industries actually to 
start a new vogue for cigars bjf the 
simple expedient of smoking cigars 
themselves. 

Spreading the Gospel 

As for doing effective propaganda 
for cigars among those not connected 
with the industry— the field is broad. 
The CBA member is limited only by 
his own intelligence and common re- 
jrard for decency and politeness. 

Think of how many possible ways 
there are to call attention to the most 
enjoyable of all forms of tobacco, and 
one of the greatest and least costly of 
pleasures known to man I 

The CBA Credo 

Is there anything in the following 
credo to which any man in the cigar 
business cannot, or should not, sub- 

1 EXAMPLE— I myself will smoke 
cigars; freely, openly, joyously; 




SMOKING CORDIALLY INVITED 



L 



Can you use a sign like tbis In your place of 

WritTto^ Baj/ufc Bulletin (Ninth Street and 
Columbia Avenue, Philadelphia, Pa.). 



BAYUK BRANDS BUILD BUSINESS 

Bayuk Philadelphia Perfecto 

(BAYUK "PHILUIS^ 

Havana Ribbon 
Mapacuba 

Charles Thomson 
Prince Hamlet 



Bayuk Phillies Victory Dinner 




ISTKIBUTOKS in tlir Metropolitan area 
staged a Bayuk Pliilliis \'i( h>iy Dinner at the 
^[a])lewoo(l Country Club, Mai)lewood, N. J., 
on Friday night, March K!. Arriving at live 
P. M. festivities ])egan at once. Lots to eat and drink 
before sitting down to dinner, which was a masterpiece 
concocted by Mine Host Lloyd, of the Maplewood C. C 
After dinner Harry Rothschild, president, very sin- 
cerely yet wittily welcomed the opportunity of joining 
the distributors and their salesmen in eelebrating 
Phillies success in 1933 and promised that Bayuk would 
come thru in even grander stvle in 1934. Other 
sjieakers were A. Jos. Xewnuin, vice-president and 
general sales manager, Xeal D. Ivey, *'Babe" Bergen, 
Al Lynch, the two Browns — Fred E., manager of the 
Xew York Branch and Abe, nuinager of the Newark 
Branch — and Joseph Kolodny. 

The glee club of the Xew York Branch sang several 
very appropriate ])arodies and then on with the show 
which was a wow. At one A. ^1. all lights out "svith 
everybody tired but happy. The dining room was 
appropriately decorated with Bayuk Phillies Victory 
Dinner as the center theme surrounded by the names of 
the celebrities present. Green in honor of St. Patrick's 
Dav was the i)redominating color. 

Those present from the Jersey City Tobacco Co. 
were Clever B. Cohen, ^lorris AVecker, Harrv Medni- 
kofif, Wm. Doror, AVm. R. AVoodrutf, Samuel Morris, 
Larry Strauss, A. B. Peacock, Max D. Cohen, Saul 
Kolodny, Steve Airel and J. Joseph Leddy, and Joseph 
Kolodny, managing director. 

Those present from the X'^ewark Branch were Wm. 
T. Glassford, Harry Bee, I. AVeinberg, David Sholk, 
Sol P]venchick, Chas. H. King, Al C. Lynch, I. Hess, 
credit manager, Allen Strombeck and Abe Brown, 
branch manager. 

From the Progressive Cigar Co. of Trenton there 
were present Jos. S. Murphy and Ad Hanauer. 

From ;M. Bergen & Sons of Elizabeth there were 
present Harry E. Keed, Charles J. Bergen, Wm. A. 
Bergen, J. Donahoe, and A. A. Bergen. 

From Wells Cigars, Inc. of Hackensack there were 
present Chester A. Wells, Rus. Helck, and Geo. Van- 
dermeer. 



Robert J. Fellows of Bound Brook, distributor for 
Somerset County was also present. 

Then from the X'^ew York Branch of Bayuk Cigars, 
Inc. there were Edward C. Asher, Charles Levy, Ben 
Albert, C. K. Zimmering, Sol Enndy, Peter Rubino, 
J. J. Gale, A. V. Swagerman, Geo. H. Barrett, J. J. 
Murphy, L. Weinstein, Fred J. Hillman, Thos. S. 
Hughes, Harold L. Little. L. HotTman, Meyer Klein- 
stein, John D. Pash, Samuel Saul, Thomas Opetsinger, 
J. D. Zeitlich, C. L. Johnson, A. W. Gondey, L. J. Rip- 
])erger, Frank A. Giimi, W. G. Kinkade, Geo. Lindquist, 
Max Weidler, Wm. Jelling, Jos. H. Florsheim, Jesse 
Berger, P. Michael McGurn, L. O. Lassele and Fred E. 
Brown, branch manager. 

From the home office at Philadelphia there were 
])resent Harry S. Rothschild, ]3resident, A. Jos. X^ew- 
man, vice-president and general sales nuinager, and 
E. M. Hirst, chief of the advertising dep't. and expert 
bowler of the Bayuk Phillies bowling team. 

X'^eal D. Ivey represented McKee Albright, Bayuk ^s 
advertising agency. 

The guest of honor was I. Goldberg of Coatcsville, 
Pa., better known as the Boy Bandit. (Ike, reported to 
be ninety and nine, carries his years very lightly.) 

Also present was Ed. C. MacAllister, chairman of 
the arrangements committee, master of ceremonies, and 
guardian of the wine cellar, and Charles Wright, 
specialty man. 



COURT VICTORY FOR BAYUK 

On February 20, 1934, the Supreme Court of the 
State of Xew York awarded Bayuk Cigars, Inc. 
damages of $10,000. and costs in an action instituted by 
Bayuk Cigars, Inc. against Julius Landsman. 

The cause of this action was based on the use by 
Landsman of the w^ord ** Philadelphia" on labels and 
bands of cigars sold by him; Bayuk Cigars, Inc. asked 
the courts to protect them against the use of labels and 
bands which thev claimed and which the court held in- 
fringed on the labels and bands of Bayuk Philadelphia 
Cigar. 



Amendments to Leaf Tobacco Code 




MEXDMP:XTS to the section on unfair methods 
of competition of the proposed code of fair 
competition for dealers, redryers, packers, and 
storers of leaf tobacco, were ofTered at a public 
hearing which concluded at the MayHower Hotel, Wash- 
ington, on May 21. To the original provisions of the 
proposed code, which listed only false advertising and 
misbranding as unfair methods of competition, J. C. 
Lanier, of the tobacco section of the Agricultural Ad- 
justment Administration, offered 12 amendments, 
covering methods of weighing, time for payment, deter- 
mination of opening dates for markets, prohibition of 
collusion, and regulation of sales. 

The amendment regarding weights would prevent 
llie buyers from y)assing back to producers losses in 
weight sustained by theft, handling, or loss in moisture, 
after the tobacco had passed into the purchaser's pos- 
session. Buyers could require reweighing of their 
purchases at time of sale on auction markets by a 
licensed or bonded weighmaster, for settlement on that 

14 



basis. If lots of tobacco were not reweighed, the l)asi.s 
of settlement would be on the weights listed by the 
warehouse at time of receiving tobacco from farmers. 

The Secretary of Agriculture would be given 
powder, under a proposed amendment, to determine the 
oi)ening date of auction markets in various areas. 
Maximum rate of sales would be limited to 3^)i) baskets 
or piles per hour on any auction floor, except for 
Federally graded tobacco, in which case the maximum 
rate of sale would be 37.3 piles or baskets per hour. 
Also, buyers w^ould be ]jrohibited from purchasing at 
private sale any tobacco which has been disj)layed on 
the auction floor, until it had tirst been offered for 
auction. 

The buyer making the last bid would be considered 
the purchaser of the tobacco, unless the bid is rejected 
by the owner, and buyers could reject sales only on 
])roof that purchases have been "nested" or 
''shingled,*' or the true grade and damage have been 
hidden by some such device, according to amendments. 

The Tobacco World 



NEWS PROM CONGRESS 

{Continued from Page 5) 

,PC0very, naming specifically the Wagner bill giving 
ncrnuuient status and increased power to the National 
labor Board, the Connery bill providmg a 30-ii()ur 
week for industry, and the securities legislation. 

The country is rapidly approaching a limit to the 
i-ipacily of the consumers' goods industries to absorb 
unemployment, it was warned by the comimttee, oi 
which Clay Williams, president of the R. J. Reynohl; 
Tobacco Company, is a member. Even if this clas^ (> 
industries were to employ more labor than in 3.)J.», it 
was said, the bulk of those today out of work would 
still remain unemployed. x • • u. 

"The main burden of unemployment is in the 
.anital goods industries," it was asserted, "and tins 
Iniiden cannot be loaded entirely or primarily upon 
those manufacturers producing consumer goods. At 
this stage of recovery, we believe that further sub- 
stantial ])rogress in reabsorbing the unemployed nec- 
..ssarily depends upon revival of capital goods indus- 

1 ries 

'**The natural question, therefore, !st What re- 
tards and destroys such confidence? We believe the 
answer is found in the unnecessary and repeated stir- 
rin- up of uncertainties and fears which, while assuni- 
iu"-" political form as legislative proposals, are perti- 
nent because of their direct bearing on the economic 
factors involved." 



<( 



ON OUR WAY" SAYS BROGAN 



Paul Brogan, vice-president of Yahn & McDonnel 
<1-ars, believes that the depression is really over and 
tliat we are definitely on the upward trend. He is so 
lirmlv convinced that such is the case that his firni has 
PU-acVed W. E. Yoemans, formerly representing P rings 
B^os: Co., to represent hi^s firm in southern ^ew Jer- 
sey. And just to show that his heart is m the ngh 
place and that he is co-operating with the President 
in his re-employment program, they will take on 
another salesman within the next two weeks. Mr 
Brogan states that their business is definitely sluming 
Mu increase, and unquestionably we are **on our way 
1(1 recovery. 



c 



WAGNER IN 3 NEW SIZES 

John Wagner & Sons announce that they are pre^ 
paring three new sizes of their Wagiier brand of 
cigars, which will soon be ready for distribution to 
tiit^ tride and which they believe will further increase 
the popularity of this brand. The nevv sizes w'lll be 
larger and in popular shapes which wil ajipeal to the 
consumer. This fine brand is already en,ioying a 
si,leiidid call. . . . Their Monticello cigar and Don 
Sebastian lines are also going very good. Ihey re- 
cently completed a promotional campaign among the- 
smokers of high-grade cigars, on these brands, with 
irood results. . . . They also report that their stock 
of imported brands is rapidly becoming depleted, and 
as there is an increasing demand for this type ot mer- 
chandise at this time, the condition is assuming serious 
•ui<'les Their Monticello smoking tobacco is 

'als^o enjoying a steadily increasing demand as a result 
of promotional work carried on in the middle west, 
where many new placements have been obtained and 
repeat orders received. 

April I, 1934 



LILLIAN RUSSELL 

\ for 
5c 




CIGARS 




CIGAR 



P. LORILLARD GO'S 

Quality 

2 *«•• 5^ 

Cigars 

Meeting the public's demand 
for quality cigars 
moderately priced 



NEW 

CURRENCY 

CIGARS 




2 

for 

5c 




Our Other Popular 2 for 5^ Cigars 
JAMES G. BLAINE • • POSTMASTER 
LA FRAOSA • SARONA • WAR EAGLE 



J 




TOBACCO TRADE ORGANIZATIONS 

TOBACCO MKRCHANTS ASSOCIATION ^L 

OF UNITED STATES "^^i, 
il"'J» ' JJ.'t President 

JESSE A. BLOCH. Wheeling. W- Va. Vice-President 

jJi-f'-Ji^VrfMl^Ne^^^^^^^ N. V :vic::K:s 

(iKclKGE II. IlLMMELL. Ne« Wk. N. "l Viclpr.si,lent 

W II, SIIEI.TOX. Wa.hinKton, D < iA'icePreMdtnt 

J^Ili'c^^V^-.l'ilW;; f:i,&^^^ 

Headquarters. .^41 Ma.lison Ave., .New ^orJc eiiy 

RET -ML TOBACCO DEALERS OF AMERICA. INC. 

WILLIAM A. HOLLINGSWORTH. 233 Broadway New Vo^^^'^^Ji^^/vice-Pre'sldenl 

( LIFFORD N. DAWSON. Buffalo. N \ .txecm. Treasurer 

JAMES C. THOMPSON, Chicago, 111 

A^^OCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS 

• ■ , ,, , f,.^ President 

JOHN II. IH'YS New \ ork C.ty p.^^^ Vice-President 

illLTON RANCK. Lancaster, Pa. - Vice President 

I). EMlL KLEIN. New \ork City Secretary Treasurer 

LEE SAMUELS, New York City -'^"^ 

NATIONAL BOARD OF TOBACCO SALESMEN'S 

ASSOCIATIONS 

. ., 1 M T President 

ARE BROWN. 1» Grumman Ave. Newark. N. J .■.•;;Fi;;t' Vice-President 

ALBERT FREEMAN. New \ nrk N. \ i.. Second Vice-President 

IRVEN M. MOSS. Trenton, N. J Secretary 

A STERNBERG. Newark, N. J 

RFT ML CIGAR STORE ASSOCIATION OF PHILADELPHIA 

•^'' President 

M« )RR1S LEVITONE . - . • ^^ : " pu:iV.lVlnhia Pa" " Secretary 

SAMl'EL MAGID. 2tXil N. Mervine St.. 1 hiladelpnia, ra 

THF NATIONAL ASSOCl.VnONS OF TOilAcl O 
DISTRIBUTORS. 1N( 

., , President 

E, ASBl'RY DAVIS. Baltimore, Md. ^. ■ • ■ ;^ , ^, - Secretary 

SST Ji^iJ^M^^u-N^ ^'^^: . *." ' ' . " . ^ ■ ■ ■ ^— 

UNITED STATES TOBACCO niSTRIBUTORS ASSOCIATION 

ffERMlNTv AW-iV TO Fox BmldinB. PhlUdciT.hVaV r.. ' . . . • '. Secretary 

'5 




RETAIL DEALERS HOLD MEETING 

N FRIDAY evening, IMarcli 16th, the recently 

organized Retail Tobacco Dealers of Phila* 

delphia, Inc., held a meeting at 617 Chestnut 

Street, which was well attended by prominent 

retailers throughout the city. 

Mr. Harvey L. Hirst, chairman of the Special 
Cigar Manufacturers' Connnittee, and Frank P. AVill, 
chairnum of the Merchandising and Sales Connnittee, 
were present and addressed the meeting on question; 
involving the progress of the Code, and stressed the 
need for a substantial organization of retail tobacco 
dealers in Philadelphia in order to make sure that the 
retail branch of the industry receives all the benefits 
from the Code to w^iich thev are iustlv entitled. 

Plans for an intensive mend)ership drive were 
discussed and another meeting of this organization 
will be held early in April, and all members of the re- 
tail branch who believe in an organization of this kind 
are urged to be present. 

This oriranization is affiliated with the Retail To- 
bacco Dealers of America, Inc., the national organiza- 
tion of retailers, and is prepared to co-operate with it 
to the fullest extent just as soon as the Code for the 
industry is officially approved. 

According to the latest information we have, the 
industry's Code has received the approval of all of 
the advisory boards in Washington and now needs 
only the signature of the Deputy Administrator and 
that of General Johnson to become a law. 

If the retail tobacco dealers in this city, or anj^ 
other, hope to derive the full benefits of the Code when 
it is approved, they should not fail to get behind this 
organization and give it their fullest support by ap- 
plying for membership at once and then co-operate 
with it in every way possible. There is no other way 
to bring order out of the chaos now prevailing through- 
out the industry. 

Membership application should be made as 
promptly. as possible to the secretary, Samuel Green- 
wald, 1205 Wyoming Avenue, telephone Michigan 
6778; to George Jones, treasurer, 617 Chestnut Street, 
telephone Lombard 8105; Harry A. Tint, president, 
1420 Chestnut Street, telephone* Rittenhouse 0397, or 
The Tobacco World would be glad to see that someone 
calls on you with application blanks if you will call 
Lombard 1768. 



MAKE-UP OF CODE AUTHORITY 



NBC 



K 



CREAM OF THE CROP" 




ORE than four-fifths of the entire tobacco plant 
is discarded in making Lucky Strike cigar- 
ettes, only the choice c-enter leaves being used, 
according to a statement by the manufacturers. 
Tobacco is one of the most sensitive of plants, and is 
particularly susceptible to diflPerences in climate and 
soils of various regions. Thus, there are many kinds 
and grades of tobaccos and of these only relatively few 
are suitable for use in making a really popular ciirar- 
ette. 

**Even on the same tobacco plant,'* the statement 
reads, '*not all the leaves w^ill meet the rigorous test. 
The top leaves are under-developed, while the bottom 
leaves are inferior in quality, coarse and sandy. The 
center leaves are mildest and are fully ripe. Conse- 
quently these are the only ones used, approximately H') 
per cent, of the tobacco j)lant being discarded." 

10 



. »j HEX the retail tobacconists' Code of Fair Com- 
^\^ ])etition is approved, a Code Authority consti- 
tuting a representation of every significant ele- 
ment of retail distribution of tobacco products 
will act for the industry. The Code Authority will con- 
sist of one member from the retail grocery trade, — two 
members from the retail drug trade, — one representing 
chains and one representing independent druggists, — 
one mend)er representing all other outlets for tobacco 
products and five members from the retail tobacco 
trade, one of the members of the tobacco trade to be a 
representative of the tobacco chains. The members 
from the grocery and drug trade are to be appointed 
by the Administrator. 

In addition to the above nine members, the Presi- 
(k^nt may appoint three additional members to serve 
without vote. 

It is predicted the Code will contain a clause com- 
]K'lling every merchant selling tobacco products to pay 
annual dues to finance effective enforcement of the 
Code. At the recent conferences of Code Authorities 
in Washington, it was asked that failure to contribute a 
fair share to the support of Code enforcement be nuule 
a violation of the Code and subject to the same penalties 
and punishment as violation of any other provision in 
tJie Code. 

The need which prompted the request for enforced 
assessments upon the industries was based upon tlic 
idea that it is manifestlv unfair and un-American for a 
small portion of an industry to pay all the costs of ad- 
ministering a Code which protects and l)enefits all, even 
those who refuse to i)av. Moreover, with evervbodv 
paying an ecpiitable share of the expense, the burden 
cannot possibly be heavy upon anybody. 




FRICK CHESTERFIELD ANNOUNCER 

ORI) FRICK, popular sports conmientator, has 
been signed as announcer for the new thrice- 
weekly Chesterfield series starring Rosa Pon- 
selle, Nino Martini, Grete Stueckgold and 
Andre Kostelanetz. The programs will be heard over 
the WAB( ^-Columbia network ev^ery Mondav, Wednes- 
dav and Friday from i) to 9:30 P. M., E. S. t., starting 
April 2d. 

Frick has held a prominent i»lace on the air for 
the past four years. He is a former professor of 
English at Colorado College and gave up teaching to 
follow^ his great interest in basel)all and newspaper 
work. He was a baseball reporter for ten years, served 
a term as president of the Baseball Writers' Associa- 
tion, and is at present manager of the Service Bureau 
of the National League. He has just completed a tour 
of several major league training camps. 



AMERICAN SUMATRA TOBACCO CO. 

American Sunuitra Tobacco Co. and its whollv 
owned subsidiaries as of .January 31 (subject to audit 
at the end of the fiscal year, July 31), show total assets 
of $7,185,306, compared with .$7,18.3,727 on .Januarv 31, 
1933, and total surplus of $4,239,168 against $4,25(),336. 
Current assets, including $525,581 cash, amounted to 
H;2,224,106 and current liabilities to $:i2,174. This com- 
pares with cash of $477,978, current assets of $2,1(;3,- 
447 and current liabilities of $15,446 on January 31, 
1933. Capital sto^ amounts to 193,105 no-par shares. 

The Tobacco World 



nils? 



1 \\ 






RED NETWORK 
9:30-10 P. M.. E. S. T. 

New York WEAF 

Hartford WTIC 

Providence WJ AR 

Worcester WTAG 

Portland WCSH 

Philadelphia WFI-WLIT 

Baltimore WFBR 

Washington . . . WRC 
Schenectady . . . WG Y 

Buffalo WBEN 

Pittsburgh ...WCAE 
Cleveland ...WTAM 

Detroit WWJ 

Cincinnati WSAI 

• 

8:30-9 P. M.. C. S. T. 

Chicago WMAQ 

St. Louis KSD 

Des Moines WOC-WHO 

Omaha WOW 

Kansas City WDAF 



Seven Months Withdrawals for Consumption 



«:. 



( ii^ars: 

( 'lass A— 

rnited States 
Puerto Rico . 
Philippine Is. 

Total 

Class B— 

United States 
Puerto Hieo 
PhililJpine Is. 



l.^'i 8 Mos. 
Fiscal Yr. 1934 



2,547,1)40,700 + 

37,191,980 — 

160,517,595 + 



-Decrease 

■ Increase 

Q}(n)ititif 



229,244,965 

2,273,090 

44,476,860 



2,745,650,275 + 271,448,735 



21,851,485 

2,150,100 

108,264 



-f 



6,795,641 

2,062,850 

412,429 



Total 



24,109,849 — 5,145,220 



( 'lass C— 

United States 
Puerto Rico 
Philippine Is. 



Total 



( 'lass D— 

United States . . 
Puerto Rico . . . 
Philippine Is. . . 

Total 

Class E— 

United States .. 
Puerto Rico . . . 
Philippine Is. . . 

Total 

Total All Classes- 
United States . . 
Puerto Rico . . 
Philii)pine Is. . . 



392,202,480 
734,430 
187,142 

393,124,052 



30,088,540 
1,0(K) 
2,050 



83,202,520 

167,450 

12,100 



83,382,076 



4,784,032 
5(K) 
174 



30,091,590 — 4,784,358 



3,843,646 — 
2,556 — 



550,315 
24,217 



3,846,202 — 



574,532 



2,995,92(»,851 + 

40,077,510 — 

160,817,(507 + 



133,912,457 
378,190 

44,028,282 



Grand Total.. 3,196,821,968 + 177,562,549 



Little Cigars: 

United States . . 
Puerto Rico . . . 
Philippine Is. . . 

Total 

Cigarettes: 

United States . . 
Puerto Rico . . . 
Philippine Is. . . 



150,408,574 
2,030,000 



16,760,227 
1,024,000 



152,438,574 — 17,784,227 



74,705,211,562 + 6,540,636,269 

3,036,000 + 792,660 

891,250 — 364,460 



Total 74,709,138,812 + 6,541,064,469 



Large Cigarettes : 
United States 
Puerto Rico 
Philippine Is. 

Total 



36,846,700 + 

645,000 + 

6,400 — 



34,780,763 

285,000 



4,591 



37,498,100 + 35,061,172 



SnufT (lbs.) : 

All United States 24,558,277 + 1,599,975 



Tobacco (nifgd. lbs.) : 
United States . . 
Philippine Is. . . 

Total 



203,135,515 4- 
71 — 



3,170,234 
120 



203,135,586 -f 3,170,114 



Send Two Dollars, with the coupon below to The 
Tobacco World, 236 Chestnut St., Phila., Pa., and 
get your copy twice a month for a year. 



Name 



Street No. 
P.O. 



_State 



rr 



^pnl t 1934 



^ 



EstabliaheJ 1886 



"BEST OF THE BEST 



99 




^^;^±^ A. SANTAELLA & CO. 

Office, 1181 Broadway, New York City 

FACTORIES: Tampa and Keg West, Florida 



OUR HIGH-GRADE NON-EVAPORATING 

CIGAR FLAVORS 

Make tobacco ni«l(o^ and smooth In character 
and Impart a most palatable flavor 

FUYORS FOR SMOKING and CHEWING TOBACCO 

Write for List of Flavors for Special Brands 
BKTUN. AROMATIZEB, BOX FLAVOES. PASTE SWEETENERS 

FRIES A BRO., 92 Reade Street. New York 



P JBRmUJIl^^^^ 



Classilieci Column 

The rate foi this column is three cents (3c.) s word, with 
a minimum charge of seventy-five cents (75c.) payabU 
strictly in advance. 



:r78?ir;>8vir/80tr8virytvir>8<i?i^»t?^^ 




POSITION WANTED 



CIGAR SALESMAN COVERING EASTERN PENNSYLVA- 
NIA and Local Territory desires connection. Large following. 
Address Box No. 580, "The Tobacco World." 

Newspaper and magazine advertising executive, thoroughly 
experienced, formerly with local newspapers and agencies, and also 
advertising manager. Position with firm desiring an advertising man, 
salesman or assistant to manager. Knows marketing, merchandis- 
ing and distribution. Salary not as important as opportunity to 
demonstrate actual worth and ability. References the highest 
Address, F. H. Riordan, 5915 Webster Street, Philadelphia, Pa. 

CIGAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON 
Automatic Machines, wants a position. Also instructs beginners. 
Address Box No. 558, "The Tobacco World." 

FOR RENT 

OFFICE AND FLOORS FOR CIGAR MANUFACTURING OR 
STORAGE — No parking restrictions; good location; low rent; 
freight elevator and loading platform. Will divide. Metals Coating 
Company of America, 495 North Third Street, Philadelphia. 

HAVANA CIGARS 

BEER WITHOUT CIGARS, IS LIKE KISSING WITHOUT 
LOVE^ — Adopt as your slogan, "Kiss your beer, but love your ci- 
gars." Specially those Havana blended, "Good to the last PuflF," 
manufactured by A. Ramirez & Co., Post Office Box 1168, Tampa, 
Fla. Write them for particulars today. 



Tobacco Merchants' Association 
Registration Bureau, SEw'ioS'cm 

Schedule of Rates for Trade-Mark Services 
Effective April 1, 1916. 



Registration, 

Search, 

Transfer, 

Duplicate Certificate, 



(see Note A), 
(see Note B), 



$5.00 
1.00 
2.00 
2.00 



Note A— An allowance of $2 will be made to members of the Tobacco M«r> 
chants' Association on each registration. 

Note B— If a report on a search of a title necessitates the reporting of more 
than ten (10) titles, but less than twenty-one (21), an additional charge of One 
Dollar ($1.00) will be made. If it necessitates the reporting of more than twenty 
(20) titles, but less than thirty-one (31), an additional charge of Two Dollars 
($2.00) will be made and so an additional charge of One Dollar ($1.00) will be 
made for every ten (10) additional titles necessarily reported. 



REGISTRATION 

D. R. D. A.: — 46,303. For all tobacco products. 
ply Co., Detroit, Mich., March 10. 1934. 



American Bo.x Sup- 



TRANSFER 



REN WICK PARK:— 46,297 (Tobacco Merchants' .Association). For 
cigars, cigarettes and tobacco. Registered February 8, 1934, by F. 
M. Howell & Co., Elmira, N. Y. Transferred to Ren wick Cigar 
Co., Newfield, X. Y., March 16. 1934. 

WHITE CASTLE:— 36,149 (United Registration Bureau). For ci- 
gars, cigarettes and tobacco. Registered December 2, 1910, by 
George Schlcgel, Xew York. N. Y. Through mesne transfers ac- 
quired by J. I. Schindler, Red Lion, Pa., and re-transferred to 
George Schlegel, Inc., New York, N. Y., February 8, 1934. 

SAVANA: — 20,131 (Tobacco World). F^or cigars, cigarettes, che- 
roots and tobacco. Registered May 4, 1910, by T. \. Wadsworth. 
Detroit, Mich., and 40,682 (Tobacco Merchants' Association), for 
cigars. Registered May 16, 1918, by Mazer Cigar Mfg. Co., Detroit, 
Mich. Through mesne transfers acquired by the .American Box 
Supply Co., Detroit. Mich., and re-transferred to D. Emil Klein 
Co.. New York. \. Y.. February 28, 1934. 

RESILIA: — 26,204 (Trade-Mark Record). For cigars. Registered 
February 10. 1902. by Henry Drucker, New York, N. Y. Trans- 
ferred by Harry Procliaska. Inc., New York, N. Y., successors to 
the registrant, to the La Floridana Cigarette Co., Tampa, Fla., 
March 15, 1934. 



The X. Snollenburu: departinent store has rear- 
ransfed their cigar department so as to give much J)etter 
di.^play to their merchandise and are displaying Had- 
don Hall and Medalist cigars in three sizes to good 
advantage. They also have Melval cigars (Wert- 
heimer Bros., Baltimore), El Producto, Gonzalez & 
Sanchez, Dntch Masters and Garcia y Vega well dis- 
played. 



"What a welcome visitor 
The Tobacco World 
must be to wholesalers and 
retailers! 

"If they are only half as 
interested in reading it as 
we ourselves are, we're glad 
our ad is in it regularly" — 

says an advertiser. 



APRIL 15, 1^34 




MM 



The importance of attractive and dependable containers for 
fine cigars is recognized by the progressive cigar manufacturer. 

Generally the brands that are increasing their goodwill in this 
present analytical market are packed in the new improved 
AUTOKRAFT cigar boxes. 
Cigar Manufacturers who have not investigated the value of 
the merits and economies of the splendid and inviting package 
may obtain complete details promptly by addressing the 
AUTOKRAFT BOX CORPORATION. 



Phila., Pa. 
Hanover, Pa. 
Cincinnati, Ohio 



York Pa 

AUTOKRAFT BOX CORPORATION Chicago, lii. 

Lima Ohio Detroit, Mich. 

A Nationwide Service Wheeling, W. Va. 



= 



II 





nmnnni 



UBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA.. PA 



After 
nothing 



all 
satisfies like^ 



a good cigar 



WOODEN BOXES 

Are the Only Natural Humidor for Cigars. 



Pack your cigars in wooden boxes and preserve 
their delicate aroma, mellowness and flavor 
right up to the time they are passed over the 
counter to the customer. 

Discriminating cigar smokers prefer to select 
their favorite brand from a wooden box and it's 
good business to cater to the dealer and con- 
sumer by packing your cigars in wooden boxes. 



/when buying cigars 

I Remember that Rcgjrdleu oi Price 

I THE BEST CIGARS 

I ARE rACKES ir% 

^ WOODEN BOXES 





THE TOBACCO WORLD 



Vol. 54 



APRIL 15. 1934 



No. 8 




The TOBACCO WORLD has signed the President's agreement and 
,%■ operating under NRA Code, gladly and wholeheartedly co-operattng to 
the fullest extent in the Administrations effort to promote industrial re- 
covery. 



D VANCE estimates of cigarette production for 
:^Iarcli show a gain of about 20 per cent., or 
five billion units better than the corresponding 
period of last year. This puts last month's 
], reduction above March of the last two years and m 
•idvance of Februarv, when the substantial production 
of more than nine billion, 167 million, was recorded. It 
is not likely, however, that the total will exceed the 
neak March of 1931, with a production of more than 
nine billion, 800 million units. In January and I eb- 
niary combined, production reached a new high ot 
"0 650,983,500, compared with the previous high for 
Uiose two months of 18,()73,2.37,190 in 1930. It is esti- 
mated that production for the first three months ot 
this year will total thirty billion cigarettes. 




no matter whether or not his class of cigar registered 
a gain. If the total cigar business continued to dwin- 
dle, then we could have had something to worry about. 



XD why do cigar men do so much worrying over 
the growth of the cigarette business! There 
again, the average man in the trade does not 
seem to interpret the facts properly. If, dur- 
ing the time that smokers had been cutting down on 
tiieir cigars, they had been treating the cigarette the 
same wav, don't you see what that would have meant! 
It would have meant a decline in the appeal which 
tobacco has for Americans. It would have meant that 
the habit of smoking was itself on the decline. As long 
as people continue smoking tobacco in any form, there 
is a good chance for every manufacturer of a tobacco 
])roduct to do a profitable business. No, the growth of 
the cigarette has not discouraged me. On the con- 



■ OULDif 'T it be a fine thing, we thought, if sim- 
\n ilar gains could be announced for cigars! 
' Wouldn't it be splendid if the March figures 
— should record another gain for cigars, m line 

with those of the last several months! And it was 
while we were thinking these thoughts that we fan into 
Frank P. AViH, executive vice-president ot (j. 11. I. 
Ci'^ar Co., who came back from a Western trip, spent 
a few hours at his desk, then beat it to Washington 
on one of his numerous journeys in the interest ot the 
ri<.-ar code, and tlien returned for a few hours to his 
office. We caught him between trains, as he was ex- 
])ectini? to hop to Washington within an hour. 




trary, it has encouraged me. 



NOTIIER thing that sometimes amuses me, and 
would give me a laugh oftener, if only it were 
not so exasperating. It is the attitude of the 
man who tells me about the wonderful business 
another cigar manufacturer is doing, expecting he is 
«»-oin*'- to cause me to w^eep on his shoulder. He is sur- 
prised when I tell him he has brought me good news. 
Sometimes he does not seem to get the point when I 
exi)lain that if I knew of a cigar manufacturer who 
was putting out a good product, at an attractive price, 
advertising it and promoting it, and still not making 
anv sales, then I'd begin to reach the conclusion that 
I «m-ht to get out of the cigar business. Certainly it is 
good news to hear that the opposite effect is resulting. 




T WOULD be a fine thing,'' said he, *'but the 
..^„. Vmsiness is doing encouragingly well 
rio-ht now, and has been for some time. l)o 



vcm realize that there has been a nice 



(r 



am 



in cigar withdrawals for tlie eiglit inonlhs .■iKlms 1' eb- 
vuarv 28th? To my n.iiKl, Hiat is somethmf: to re- 
joice over, when von compare tliat gratilyni!; result 
with the steady and seemingly never-ending losses in 
Ihe total figures for the last several years. I ''Y^ "° 
patience with the man in this l.nsn.ess who wdl take the 
U.tal figures apart for the sad pleasure ot showing that 
the iivc-cent cigar accounts for the gains «>" '^'^r- 
eomes losses in other classes. He does not seem to 
realize the point. The point is that people have not 
sopped smoking cigars. They are smoking more 
,. "ars now and have been smoking more cigars during 
the last eight months than during the corresponding 

something in favo r of everybody in the cigar business, 

The TOBACCO WORLD (published 1881) U published by J°b?cco World Co.poratiom 
Ger.ld'B. mnk,ns^Se^eUry. 6ffi«. 236 Ch'V"u' S^«««- Jh.Udelph^^^^^^^^ , ^„, £„,,„<) „ second-das, m«l matter. 

??J?^tr'°22^°^TtgX{''orcrrhU^^^^^^^^^^ 



E MEX in the cigar business are too prone, I 

Xn am afraid, to put the blame for unsatisfactory 
' l)usiness anvwhere except where it belongs. It 
is too much the custom to blame bad business 
on bad conditions, or on this, that or the other reason, 
when the blame should rest on our own shoulders ^o, 
voun- man, vou can't make me feel unhappy by telling 
nio how well the cigarette people are doing, nor how 
well some other cigar manufacturer's product is going 
over As a matter of fact those are two ot the three 
ro-isons whv I am feeling fine this morning over the 
outlook. tL third reason f ^Xf. we don't like to talk 

a)>out ourselves, but ." Thank ymi, ^Mr- ^V il^ tor 

ri ng our editorial for this issue. You didn't know 
vmi were doing it, and you'll be sui^rised when you see 
it for the first tinie here in print, but you did a work- 
manlike job, just the same. 



Cheer Up! We'll Soon Have A Code 



Argument for Tax Reduction 



• »g HEX aiinouiiconiont oaiiio from Vincoiit Astor's 

\f^ yaclit that the l*rosi(loiit would add anothor 

week to his fisliiiii>- trip, it iiieaul that in all 

probability the Kotail Tobacro Dealers* Code 

would not be siuned bv ^[i*. Koosevelt until some dav 

after his return to his White House desk on or about 

April l()th. 

That the Presidential signature will ])romul<»ate 
the Code as a part of the law of the land in about ten 
days or, at most, two weeks, from now, seems to be the 
Sfoneral opinion of those who elosely observe i)olitieal 
developments in AVashini»:ton. 

As the Code is now written, ]\rr. Roosevelt's act of 
sifirnine- it will eliminate all over this count rv anv fur- 
ther use of tobacco products as loss leaders antl will 
immediately protect all tobacco retailers from jn'eda- 
tory price-cut tini? and from any other trade practices 
that have been threateninu" to destroy them. 

Xo sooner will the ink of the President's signature 
be drv than the man who tovs with tobacco products as 
loss leaders will l)e branded a law-breaker. Similarly, 
he who fjoes in for vicious ])rice-cutting' will be a vio- 
lator of the law — an offender, each of whose otTenses 
mav cost him ^oOO for everv dav that he continues this 
expensive form of rascality. 

The Retail Tobacco Code authority can and will, 
from the very bejiinninir, go after such malefactors in 
earnest. These are the davs when strict enforcement 
of codes strikes a popular note in the Xational Cai)ital ; 
and it can be stated without fear of contradiction that 
the co-operation of the Xational Recovery Administra- 
tion and the ap])roval of the White House itself will 
encourage the Retail Tobacco Code authority in its 
determination to compel, if necessary, 1(10 ])er cent, 
compliance with the terms of its Code. 

Kot that anything of undue harshness will he un- 
dertaken. Everv man will be given his dav of exi)lana- 
tion. If a^ charge of Code violation is made against 
Mr. A., he will be called l)efore his local compliance 
board. If found guilty and if i)ersistent in his viola- 



lion, ^fr. A. will find himself obliged to take a trip to 
AVashington, i)erliai)s — or something e(iually suggestive 
of his Code authority's jmwer will be em])loyed to 
impress ujwn him the advisability of i)laying fair with 
his competitors and with the law. 

The details of the com])liance ])rocedure have not 
been entii-ely worked out, but at this date it is safe to 
say that they will be workable, that they will be em- 
l)loyed without hesitancy, and that, if the Code is 
iiouted and defied, the law-breaker will lind himself at 
the end of a road that brings him face to face with a 
l)rosecuting attorney. 

In a word, Retail Tobacco Dealers of America have 
made uj) their minds that, the moment the Code be- 
comes elYective, the wheels of its com]>liance machinery 
shall begin to turn. 

The members of thoir Code Committee, having sac- 
rificed their time, money and business to the jol) of 
securing a good Code under the XRA, are resolved that 
the industry shall leceive every jmssible benefit from 
the oj)eration of that document. 

Its ])rovisions ])ut an end to ])redatory ])rice- 
cutting, an<l they prohibit and ])revent loss leaders in 
retail tobaceo ])roducts. Obviously, if one violation of 
those ])rovisions went un])unished or unrebuked, others 
would s])eedily follow until they would take on the ap- 
l)earance and the destructive force of an avalanche. 

In other words, the same old vicious trade prac- 
tices which the Code forbids would soon be coming 
down u])on us through the unguarded door of non- 
compliance. That is one thing which the Code Com- 
mittee is determined shall not ha])pen. 

At this writing, *'The Code," the X>w Deal for 
tobacco i-etailinu', is pi-acticallv readv for (Jeneral John- 
son's desk: and the belief in Washington is that the 
(leneral will have it at the White House readv for the 
Presidential signature when Mr. Roosevelt gets back. 
Cnless something unfor(»seen occurs to jirevent, this 
program will go through. 



Essential Provisions of Cigar Code 




T IS our latest information that the Cigar 
Manufacturers' Code, as ap|)roved by the Xa- 
tional Recoverv Administratif)n and Agricul- 
tural Adjustment Administrati(»n, and now 
only awaiting the President's signature on his return 
from his fishing trip, contains the following essential 
provisions concerning wages, hours, coch' authority, 
sales bv manufacturers, sales bv joblurs to sub- 
jobbers, and sales l)y retailers: 

Wages (Hand Factories). — Strippers, 22' - cents 
per hour; unskilled labor in the South, L''); cigarniakers 
(a) 2 for 5-eent factories, 27; (b) 2 ') to .l-cNMit, llO; 
(c) 2 5 to 5-cent (South), 28; (d) al»ov<' :> cents, :U; 
(e) above 5 cents (South), .'?2. Tolerance of 2.") per 
cent, in slow workers, who may receive less than sj»eci- 
fied minimum wages, is allowed. 

Wages (Blachine Factories). — Stri])pers, 22V1»; un- 
skilled labor in the South, 25; machine o])eiators, 2/5 
cents, 29; machine operators, above 2/5 cents, :U; same, 



in the South, ',V2; slow workers, 1(1 jjcr cent, tolerance. 
Piece rates shall be established sr> a< to yield minimum 
rates named in al)ove schedules. 

Hours — Xo employee may work longer than 40 
hours per week or eight hours per day, except execu- 
tives receiving i);.'>5 per week or more, outside salesmen, 
watchuKMi (not ovei 5f> hours j)er week), chauiTeurs and 
deliverymeii (4"^ hours ])er week), firemen and engi- 
neers (44 hours ])er week), shi])piiig dej)artment em 
jiloyees (44 hours j>er week, with ])ayment of one and 
one-third time for overtime in rush seasons), and j)ro- 
ductive employees during two rush seasons each year. 
All the time worked on Sundays and legal holidays, 
exce|)t by watchmen, engineers and firemen, shall be 
paid at the rate of time and one-third. 

Code Authority — The Cigar Manufacturers' Code 
Authority shall consist of nine to thirte(»n members, 
three of whom shall be hand and three machine manu- 



By Junius Parker 




{Continued on page 13) 



Th* Tobacco World 



10 KESPECTFrLT.Y and (earnestly urge upon 
the committee the wisdom of a horizontal re- 
duction of the taxes on cigarettes, tobacco of 
all kinds and snuff, of at least 40 \)vv cent. 
That means (eliminating the fraction in the case of 
lobacco and snulf) a reduction from '^'^ ])er thousand 
t., ^1.80 ])er thousand on cigarettes, and from 18 cents 
per ])ound to 10 cents ])er ])ound on tobacco and snuff. 
We l)elieve we know the industry, and we believe ])ro- 
I'oundly that the ado])tion of our suggestion would be 
1(> the great and lasting benefit certainly of the large 
and important grouj) of ])roducers of leaf tobacco and 
the large and im])ortant group of consumers of tobacco 
and its products. In that field we are confident. Wo 
realize, though, that the Congress has a broader out- 
look on the matter of government finances than we, and 
we realize that every form of taxation works its own 
liardsliij) and has its own disadvantages, and yet that 
the government must have large revenue. It is in that 
liehi that we are diflident. We conceive it a duty, 
though, as we deem it a privilege, to utilize this oppor- 
lunitv to i)resent frankly our views in the tield in which 
we certainly ought to have special and exi)ert informa- 
tion and o])inion. 

The i)resent taxes on to])acco jind tobacco ])roducts 
are not war taxes: they are higher than war taxes and 
may 1)0 more ])roi)erlv called Prohibition Amendment 
taxes. In Xovember,' IDIT, there were put into effect 
the*^var taxes." These ''war taxes" were at the rate 
of $2.05 per thousand on cigarettes, an increase from 
$1 '\5 and V.\ cents ])er ])ound on tobacco, an increase 
from 8 cents. In January, IDli), the Prohibiti(»n Amend- 
ment was i)assed. (^)niiress was confnmted with the 
necessity of making good more than $400,000,000 paid 
in Internal Revenue by intoxicating beverages, and it 
was then that the tax on cigarettes was raised from 
$2.05 i)er thousand to the ])resent rate of $3 per thou- 
sand, and the tax on tobacco was raised from l.'J cents 
]>er pound to the jn-esent rate of 18 cents ])er ])ound. 
Stated otherwise, two farm horses had been pulling a 
tax load for a long time, an<l in \\n\) one was killed, or, 
as the final outcome showed, put out to pasture, so lar 
as revenue was concerned. So an additional h»ad was 
put on the horse that was still in harness— the tobacco 
industrv. With the emphasis of understatement, I may 
^ay that the "Mobaeeo horse" has carried the doul)le 
huVden fairlv well. In the fiscal year that ended .lune 
.III, I'JlS, the*tol)acco industry i)aid in Internal Revenue 
taxes $15C),000,(>00 an<l in the fiscal year that ended 
.June :^.0, ID.U it paid $102,000,000. It seems to ine 
there is an element of dramatic justice -now that this 
other horse, that has been dead, or out at pasture, is 
back in harness—that tlnM-e sliouhl be s<»me reliet given 
1(» the horse that has carried so long so heavy a l)urden. 
Of the !^1.2t) reductinn in cigarette tax which we sug- 
gest I>5 cents is Prohibition tax an<l only 25 cents ia 
war'lax, and we shall still ))e left with a 55 cents higher 
ate than in pire-war days. Of tlie s cents reductinn 
tliat we ^u«»'irest in tobacco tax, .) cents is a Prohibition 
tax, and we shall still ))e h'ft with a 2 cents per pound 
higher tax than in pre-war days. ... ... 

So far as ciyarettes are <'oncein(Ml, the immediate 
effect is predictal)le with al>solute assurance. Leaving 
out of account as unsubstantial by comparison with the 

April 13, 1934 



whole business, the cigarettes that weigh more than 
three i)oun(ls ])er thousand and the cigarettes made 
entirely of Turkish tobacco, all of which sell for higher 
])rices, we have in this country a j)roduction and sale 
of well over 100,000,000,000* cigarettes which are 
packed in ])ackages of twenty and which go to the con- 
suniei- at 15 cents per ])ackage or less. These cigarettes 
mav be divided into two classes of which the very much 
larii:er class in volume of sales is what I would call 
"standard cigarettes." I am not going to call them 15- 
cent cigarettes because they are not 15-cent cigarettes, 
and to call them 15-cent cigarettes induces entirely mis- 
leading comparisons of tax percentages, and other such 
misleading comparisons, that ought to be avoided. 
They are and have been sold at prices ranging any- 
wIh re from 11 cents, or even, at some times and at some 
retail stores, 10 cents to 15 cents ])er package. Camel, 
Chesterfield, Lucky Strike, and Old Gold are some of 
the well-known cigarettes of this type. AVith the reduc- 
tion in tax suggested, they would all certainly go to a 
customary i)rice of 10 cents per ]jackage. I am likewise 
a little embarrassed as to what to call the other sub- 
stantial class of cilia ret tes. I do not call them lO-cent 
cigarettes because that is not a ])ermanent name for 
them: If the tax reduction we suggest is made, they 
will sell at a lower ])rice than 10 cents — I should, if I 
used a ])rice name, hereafter have occasion to refer to 
them as 8-cent cigarettes— and it ai)pears that if the 
tax reduction is not made they will sell at a higher price 
than 10 cents unless, indeed, a governmental subsidy in 
the shai)e of a tax differential is given to their manu- 
facturers. From the report of a hearing at which man- 
ufacturers of these cigarettes were heard by the Ways 
and Means Committee some time in January, I find 
that a member of the committee naturally and spon- 
taneously called them the ''cheap cigarettes," and that 
there was some suggestion that that phrase might re- 
flect on their cpiality. It seems to me it does not, and 
1 have no intention to make that reflection. I cannot 
easilv make and use a i)hrase to take the place of a 
>inii>le, spontaneous word, so I shall call them the cheap 
cigarettes, referring only to their always selling at a 
lower price than the standard cigarettes. These ciga- 
i-ettes, with a tax rate of $1.80 per thousand, would go 
to the consumers in ])ackages of twenty at 8 cents per 
simile package, two for 15 cents. 

In tobacco, whether smoking, twist or plug, and m 
sinilT, the immediate result of the suggested reduction 
i. lint so detinitelv and certainly predictable in detail, 
thou'di it mav w'ith equal contidence be predicted m 
..vneral result": Smoking tobacco, including scrap, and 
smifl*, are in statutorv ])ackages, but the packages m 
the trade are various, and they may under the law vary 
from each other to the very small extent of one-eighth 
of an ounce. In the case of i)lug and twist tobacco 
th, re are no statutorv ])ackages ; the product is sold in 
iH.xe. or caddies with the size of the consumer content 
tiK.Mi hv indentation, or a spacing, so far as plug to- 
),acco is conceriH'd, and by the size of the individual 
twist so far as twist tobacco is concerned. In all of 
thi^ tobacco business the competition is keen and unim- 
peded Those eimaged in it are numerous, they are 
Inr-e and small, thev are prosperous and unprosperous, 
•ind thev have not, even in the dim historic past, had 



the slightest tie that binds. In this condition, and with 
the flexibility that exists under the revenue laws, and 
with the customs of the trade and the habits of con- 
sumers, the manufacturers would pass on to the dealers, 
and through the dealers to the consumers, the tax re- 
duction, not many by a change in price, it seems to me, 
but generally bv an increase in the unit content. This 
is so because far and away the majority of consumer 
sales of tobacco products other than cigarettes and 
cigars are now in 10-cent units or 5-cent units. Some 
of the manufacturers, though, would undoubtedly 
change their prices instead of, or as well as, their units 
of sale. It seems to me that, with these conditions, 
including the condition of competition, either by en- 
largements of units of consumer purchase or by direct 
lowering of prices, substantially all of the proposed 
reduction would be passed on by the manufacturers. 

I realize that as ai)i)lied to cigarettes, whether 
standard cigarettes or cheap cigarettes, I have made 
only oracular assertions, and tliat it behooves me to 
state, tirst, what justities these assertions, and, sec- 
ond, if I am to be of any aid to you, what is to be the 
secondary effect on the different classes engaived or 
interested in the industry, and tlie government's reve- 
nue, of all these tirst results of the reduction in tax 
that we urge: First, as to the standard cigarettes, the 
price that now prevails is srfJ.lO ])er thousand less dis- 
counts of 10 per cent, and 2 per cent., wliich makes 
a net manufacturer's price of $5.38. All cigarettes are 
sold at a list })rice less 10 ])er cent, and 2 per cent., but 
I think, complicated as the matter is at its best, it will 
be easier for you to follow me if I disregard always 
hereafter the list ])rice and talk in terms oi net manu- 
facturer's price. The present tax is $3 per tliousand, 
so the manufacturer of the standard cigarettes is re- 
ceiving a price ex tax of $2.38. If the tax is reduced 
as proposed to $1.80, and the present existing price 
ex tax of $2.38 is added to the i)roposed tax of $1.80, 
you have $4.18. Now $4.18 is approxinuitely the price 
charged by the manufacturers of cheap cigarettes for 
their .products — their actual price is $4.19 or 1 cent 
higher than my computation, and you will remember 
that this is the product wliich is sold by them to retail 
at 10 cents. It provides a margin of IG per cent, for 
distribution. Suggestions have been made that a net 
manufacturer's price of $4.10 per thousand, if the 
cigarette is to be sold to the consumer at 10 cents for a 
package of 20, permitting a somewhat better margin 
for distributing merchants, would be wise. With 
that suggestion I am in hearty accord, aTid I hope that 
manufacturers of standard cigarettes are in accord 
with it, too. If the $4.18 price should be adopted, the 
manufacturers of standard cigarettes would have 
passed on all of the tax reduction; if the wiser ])rice of 
$4.10 should be adopted, then they would have passed 
on the whole tax reduction plus 8 cents per thousand. 
If one manufacturer adopts this policy, wise as it seems 
to me, the others nmst follow. 

That last sentence suggests to me a digression that 
I must make, and had just as well make now: Being 
warned by things that were said before the AVays and 
Means Committee in January, I shall anticipate the 
suggestion that even with the reduction of tax the Big 
Four will get together and profiteer. There is not, 
never has been, and never will be a ** getting together" 
in the fixing of their jjrices by the four corporations, 
or any two of them, that are called collectively the Big 
Four. Identity of price between competitors, or the 
quick following of a change in price of one competitor 



by another, is even more frequently indicative of keen 
and ai)prehensive conqietition than it is of combina- 
tion. The cheaj) cigarettes of Axton-Fisher and the 
cheap cigarettes of Brown & AVilliamson, the two manu- 
facturers who made this suggestion, have ])recisely 
the same list prices and ihe same discounts, and so like- 
wise their mentholated cigarettes are sold at ])recisely 
the same price, and yet I do not suggest that they got 
together and fixed their ])rices by agreement. In the 
same way, and only in the same way, is a price change 
in Camel quickly followed, for instance, by u ])rice 
change in Lucky Strike. Again, if the four corj)ora- 
tions called collectively the Big Four, or any two of 
them, have established their prices by agreement, they 
have violated the Sherman Law, and, besides that, 
tliey have violated the equity decree of 1911 under 
which they are operating. So if any one of them is 
agreeing with any competitor as to ])rices to be 
charged, it is, on l)oth accounts — for violating the 
Shennan Law and for violating an equity decree — 
liable to a ]iroceeding instituted by the Department of 
Justice. If anyone has information that warrant such 
an accusation, let him present it to the Dejiartment of 
Justice; in the absence of such information the insinua- 
tion ought not to lie made to clutter up the considera- 
tion of a taxing statute. 

As to cheap cigarettes: Naturally with standard 
cigarettes then selling at 10 cents, the mainifacturers of 
cheap cigaiettes would desire the benefit of a lower 
])rice in an effort to maintain and increase their sales. 
They would secure a retail price of 8 cents, two for 
15 cents, without the necessity of passing on the whole 
tax reduction, but with precisely the same financial 
assistance to themselves that is embodied in the sug- 
gestion they made in January: Their price is now 
$4.19 which, with a tax of $3 leaves a price ex tax of 
$1.19; their suggestion was a $2.70 tax with a manu- 
facturer's price of $4.10, which would mean a $1.40 
price ex tax, or an addition to the net manufacturer's 
price to cover increasing costs of 21 cents. Add this 
$1.40 ex tax price that they suggest to the $1.80 tax 
that we suggest, and you have a price of $3.20 per thou- 
sand, giving to them the 21 cents per thousand of relief 
which they sought, and bringing a price of 6.4 cents per 
package of twenty, which certainly brings an 8-cent 
consumer price per package, two for 15 cents. It is on 
that account that I predict that the cheap cigarettes 
would be sold by the manufacturers with the tax reduc- 
tion we suggest at approximately $3.20 per thousand. 

From the consumption of cigarette paper in this 
country during the years before the depression, as, 
for instance, the fiscal year ended June 30, 1929, I 
assume that some 12,000,000,000 **roll-your-own" 
cigarettes were consumed then. It is my earnest be- 
lief that the phenomenal increase of **roll-vour-own" 
cigarettes between 1929 and 1933 from 12,000,000,000 
to 50,000,000,000, was not the result of any natural in- 
erease in **roll-your-own" smokers, but the result of a 
transfer from consumption, actual or potential, of 
ready-made cigarettes by economic pressure. If the 
reduction that we suggest should be ado])ted, so people 
could get cigarettes they like for 10 cents, with even 
norm«il prosperity, T think that there would be lifted out 
of present consumption of **roll-your-o^v^l" cigarettes 
into cigarette consumption, at least and quickly 38,000,- 
000,000 cigarettes— the difference between the 12,000,- 
000,000 consumed in 1929 and the 50,000,000,000 con- 
sumed in 1933. 



Musings of a Cigar Store Indian 



By Chief "Young-Man-Smoke-Cigars" 





(Continued on Page 16) 



Th4 Tt^cco World 



URTIIER entries from ''The Passing of the 
Wooden Indian" by John L. Morrison in 
the October, 1928, issue of Scribner's: ''The 
trail of wooden Poor Lo next leads to 
the studio of Julius Theodore Melchers, of De- 
troit. Melchers has gone from this life, but his 
.spirit still moves through the impetus he gave 
art, in Detroit particularly and the West gener- 
ally. Melchers was born in Doest, Westphalia. lUs 
innate gift was guided and moulded in the best tradi- 
tions in the Beaux Arts, from which famous institution 
he graduated, to fare forth to Detroit. His jjupils 
included Gari Melchers, famous in our day, Rolshoven, 
and others of note. 

•'When the demand for the nobler forms ran into 
the doldrums, it became necessary to drag Art lo the 
marketplace, quite strip her of the conventions, and 
all but 'sell her down the river.' This is why Melchers 
made wooden Indians now and then. The Denmark 
lad, Herman Matzen, learned about Indians from him. 

Cj3 CJ3 CJ3 

XOTHER Detroit sculptor who made his con- 
tribution to this form of useful art was Theo- 
dore Crongeyer, designer and carver in the 
seventies tit 55 Farmer Street. J. Leser, a 
veteran tobacconist of Brooklyn, never carved a cigar- 
store Indian, but has seen it done many times when 
as a boy he frequented the wooden-Indian shop of one 
Cobb, of Canal Street, New York. Cobb was a fast, 
expert worker and never used a mallet, driving the 
chisel with the palm of his hand. Fritz Decker, who 
died eighteen years ago, was the last of the Philadel- 
phia wooden-Indian makers, and one of the best. 

"Before 1870 there was activity in wooden-Indian 
making in the Milwaukee sector. A. F. Miller, AVater- 
town. Wis., in the sixties bought a used 'Indian,' really 
a Turk, in Milwaukee, made by a group of Swiss or 
(lernian w^ood-carvers lately migrated thither. 



CS3 CS3 Cj) 

O FAR as my research goes, Mr. Matzen is the 
oidy man living who made wooden Indians. 
Doubtless tliis will elicit claimants to damn 
this assertion, using the expletive in its scien- 
tific and literary sense. There may be others, but the 
most enthusiastic and painstaking search for knowledge 
anent wooden-Indian sculptors among the great of the 
tobacco world-— distributors, editors, veteran dealers, 
and aged cigar-makers— failed to disclose the slightest 
clew leading to the discovery of another man now in 
the flesh who chiselled Indians out of 'enduring white 
pine. ' 

**A visit to Matzen's (Meveland studio gives no 
hint of his one-time experience. The bronze of tlie 
pensive 'Lincoln,' the symbolic 'Cain and Abel,' stately 
♦Moses', and his great 'War and Peace' group at 

April 15. 1934 





Indianapolis, his training in Europe's best art schools, 
and thirty years a teacher of sculpture, with the noted 
in art circles in Europe and America his friends and 
confreres — these facts seem to cry out against the 
possibility. 

Ct3 Ct3 Cf] 

HERP] were some importations of cigar-store 
figures, perhaps not many. The Maryland 
Historical Society Museum at Baltimore con- 
tains a contribution to wooden-Indian sculp- 
ture })y that country of sculptors, Italy. This figure, 
which stood in front of John Foble's cigar store, Cam- 
bridge, Md., from 1830 to 1926, has a face benign and 
strongly Latin, and habiliments such as a noble Roma,n 
would wear at a martyr-eating-lion matinee. His 
crown of feathers, or tobacco leaves, the coil of to- 
bacco at his feet, and the welcome-stranger cigar-offer- 
ing save the day for the best traditions. 

"La Belle France's idea of an Indian maid stood 
exemplified in wood at the foot of South Street, Phila- 
delphia. James LeNoir, French and twenty-two, pur- 
chased an ancient tea warehouse and became possessed 
of the half-pound key which operated the ten-pound 
lock; and the same year opened a tobacco shop, plac- 
ing in front thereof a Pocahontas he had imported 
from France, her ocean journey taking three months' 
time. She smoked a pipe and there she stood 'for to 
see and for to be wondered at' for eighty-five years. 
Her physiogonomy was of the Champs Elysees rather 
than the trackless forests about Lake Huron. 

Cj3 Cj] Cj] 

MOXG Indians still on duty in xVmerica the 
longest continuous outdoor service is that of 
the red man at the Maltzberger tobacco shop, 
Reading, Pa. Charles R. Maltzberger bought 
him in New York, when he opened his shop in 1847, 
and this Indian has stood there ever since, except Sun- 
days and that day he was once kidnapped and carried 
in the Order of Red Men parade. 

CJ3 CJ3 CS3 

NVISAGIXG the world, as the inspirational 
speakers say, I nominate as dean of tobacco- 
sho]> figures the Highlander, 'Phineas the Sec- 
ond,' of A. Everard & Co., Ltd., 10 High H oil- 
born, London, W. C. 1. Phineas is in an excellent state 
of preservation, despite his one hundred and sixty 
^c>ars of fluctuating fortune, which includes twenty 
'years' solitary confinement in a dusty attic, relieved 
by adventurous excursions with boisterous medical 
students to football fields and to bait the rival team's 
supporters bv unacademic combat. Unmarred by mod- 
ern paint, he glories in the rich mellow coloring remm- 





iscent of an old-master oil painting-. His stern but 
classic features reflect the skill of the unknown carver 
who shaped the mass of oak into a lifelike sombhmce 
of a snutf-takinir Scotchman. Despite the repeated 
importunities and offers of auticpie hunters and buyers 
from museums Phineas remains with Everards, as Mr. 
Harold B. Thorpe, secretary, says 'to live out ^lilton's 
adasre — he also serves who onlv stands and waits.' 
For one hundred and sixteen years Miller & Co.'s 
Highlander has stood in their doorway, 37 London 
Street, Norwich, England. Like his London brother, 
he W'as carved from oak by an unknown sculi)t.or. 
There have been many unsuccessful offers for this 
effigy, including one from the late King Edward, when 
Prince of Wales." 




TO CONTINUE CIGAR LEAF REDUCTION 

ORMAL notice of exercise of the option under 
the 1933 cigar-leaf tobacco adjustment con- 
tracts to continue the acreage reduction for 
these tyi)es of tobacco during the 1934 crop 
year has been mailed to approximately 18,000 contract- 
ing producers in the ^liami Valley, Wisconsin-Minne- 
sota, Pennsylvania-Xew York, and New England dis- 
tricts by Secretary of Agriculture Henry A. Wallace. 

In the notice sent to growers it was pointed out 
that a supplemental payment, varying in amount ac- 
cording to producing district, is now offered to those 
producers who participated in tlie 1933 program, and 
who now sign a rider, or revision, to their contracts 
provided they perform their obligations under the con- 
tract and show that their tenants received a proper 
share of 1933 payments. The rider also provides that 
growers may elect to keep either one-third, one-half, or 
their entire base acreage out of production. Two addi- * 
tional choices in determination of base acreage are also 
offered. 

Growers who are now under contract, and do not 
sign the new rider to the 1933 contract are recpiired to 
maintain the 50 per cent, reduction nuide ])y them last 
season, for which they will receive adjustment pay- 
ments at the same rates as those of the past season. 

At the same time the cigar-leaf growers who did 
not take part in the 1933 adjustment program are given 
an opportunity to sign contracts to which the revisions 
contained in the rider mu<t be attached. These con- 
tracts cover the 1934 and 193r) seasons. These new 
participants cannot qualify for the supplemental pay- 
ment but will receive the other payments. 

Two payments, in addition to the sui)plemental 
pajTnent, will be made to growers who ])articipate in 
the 1934 program. The first, to be disbursed before 
October 1st, after proof of com])liance has been checked, 
will be at the same rate as first payments for 1933. The 
rate of the second payment, based on the value of the 
1934 crop, will vary according to the ()i)tion chosen by 
producers as to amount of reduction. 

Producers desiring to take advantage of the new 
options offered in the rider, are asked to file the exe- 
cuted rider, or contract and rider if they have not pre- 
viously been under contract, with the district tobacco 
agent before May 1st. County agents and local com- 
mitteemen have contracts available for producers who 
have not yet signed. 

To date, growers who operated under adjustment 
contracts during the 1933 season have received all but 

S 



^400,000 of the approximate $2,000,000 to be disbursed 
in payments provided in the contracts. Less than 4000 
growers have yet to receive their final 1933 payments, 
which are based on the market value of the 1933 crop. 
Those farmers who have not sold their tobacco will 
receive payments on the basis of an appraisal of the 
value of their crop, provided application for appraisal 
is made prior to lilay 1st. 




PRAISE FOR FRANK TRUFAX 

S A CLIMAX to his interesting article, *' Sales 

Letters vs. Pep Talks,'- in tin* A])ril 5th issue 

IJ of Printer.^' Ink, Robert W. Palmer has this to 

say about the famous "Frank Trufax" letters 

sent out by A. Jos. Newman, vice-])resident and general 

sales nu\nager of Bayuk Cigars, Inc. "They are a sort 

of institution, for they have been going out for years. 

" 'We honestly believe,' says Mr. Newman, *our 
salesmen (and our jobl)ers' salesmen, to whom they go) 
find them just as heli)ful today as ever — w^e get razzed 
enough if we do not send them out I'cgularly.' 

"The Bayuk letters are inspirational in character 
— more so than most companies these days would care 
to use. But tliey have been going out for so long and 
Frank Trufax has ])een giving such downright good 
advice all these vears that thev are undoubtedlv on the 
right track." 

Mr. Palmer reprints an example of a Trufax letter. 

"Mr. Newman," he continues, "sums up the case 
for sales letters and bulletins very well : 

" *I do not think any kind of letter hits home with 
the salesman who cannot make a living out of his job. 
I can't ask a num to run a long race on an empty stom- 
ach — neither can a letter be written to a salesman that 
will inspire him to make money out of his job if there 
is just no money in the job. , , . The letter must im- 
part some knowledge or awaken a desire to obtain some 



knowledire bv the salesman. 



We continue to use 



sales letters and we believe they are as beneficial today 
(if not more so) as during any j)revious period.' " 



"COOLING SYSTEM" PIPE 

The Buttner ])ipe with "cooling system" has re- 
centlv been introduced to the trade. The outer bowl of 

* 

this pipe is made of Bakelite molded. It is fitted with 
an abs()r])ent ceramic tilter, which surrounds the inner 
bowl, sucks in all the heat, moisture and irritating 
toxins. The filter can be burnt otT when it has become 
discolored, by placing it on red-hot embers. It will 
then be snow white and ready for use again. The pipe 
is of English manufaeture, and is being sold in this 
country by the Buttner l*ipe Corporation of America, 
of New York City. 



NATL. SALESMEN'S ASS'N 

The executive eonnnittee of the National Board 
of Tobacco Salesmen's Associations will hold its regu- 
lar quarterly meeting at the office of President Abe 
Brown, 408 Market Stn»et, Newark, New Jersey, Sat- 
urday, April 21, at 3 P. M. Delegates from all branches 
are urged to be present. 

Tht Tobacco World 



HEAR THE CAMEL 
CARAVAN WITH 





Casa Loma Band 

Delights Fans 

Have you heard the hit show of the air— The Camel 
Caravan? What a show! What a cast! 

COLONIL STOOPNAGLi and lUDD— who have pan- 
icked radio fans from coast to coast bring still greater 
**thing8 and stuff" to listeners on The Camel Caravan. 

CONNII lOSWiU'S vibrant... vivid... appealing con- \ 
trallo voice will thrill you. ..with the beautiful songs 
of the past...and the pleasing, lilting melodies of the 
current **hit'' tunes. 

CASA lOMA 0«CHI$TtA - recently voted by fans 
throughout the country as one of America's most 
popular bands, continues to charm listeners with its 
smooth, unusual rhythm and personality music. 

So listen for the strains of the Casa Loma theme 
song, **Smoke Rings," light up a Camel, and hop 
aboard The Camel Caravan for 30 minutes of un- 
alloyed enjoyment! 



■ ».■■ K^'T TBe«I«y -nd Tliur.d«r ■! 10 P.M., E.S.T.-9 P.M., C.S.T.- 
lUNE IN! 8 P.M., II.S.T.-7 P.M., PAT. •••r WABC^«l«»bU Network. 



ABOVE YOU SEI 

an exclusive portrait of 
Colonel Lemuel Q. 
Stoopnagle and Budd, 
relayed to this publica- 
tion by thought waval 



\ 




GLAMOROUS CONNIE 

At the left is little Connie 
Eloswell. ..whose lovely 
deep contralto voice has 
made millions of radio 
friends for heri 



Copyright. 1934. 
B. J. RcyriulUs Tobacco Computjr 



April 15, 1934 




News From Congress 



_ -AND 

Federal 
Departments 



From our ^Vashingtoh B^jreau 622Albce Buiioing 





MEXDMEXT of tho tax law to prevent evasion 
of the full cigarette tax by '*long" ciij:areties 
was api)roved b}' the Senate April 4th, when 
an amendment submitted by the finance com- 
mittee was accepted providing: for imposition of the 
tax by length where cigarettes are moii^ than (JVj inches 
long/ 

Plaving been added by the Senate, it will be neces- 
sary for the House of Representatives to ])ass on the 
provision but no difficulty is anticipated in securing 
House approval. 

Under the tax provision as written by the Senate, 
the levy on cigarettes weighing not more than three 
pounds per lOUU remains at $o per KHH), and the tax 
on cigarettes weighing more than three j)ounds re- 
mains at $7.20 with the following proviso: "except 
that if more than tiVi' inches in length they shall be 
taxable at the rate provided in the preceding i)ara- 
graph ($3 per 1000), counting each 2% inches (or 
fraction thereof) of the length of each as one cigar- 
ette.-' 

Ct3 Cj3 Ct3 

EARIXG the end of its task of codifying the 
industries of the count rv, the Xational Reeov- 

• - 

ery Administration is being reorganized with 
a view to its transformation into a code- 
enforcing organization. 

Under a new set-up worked out by Administrator 
Hugh 8. Johnson, the administration of codes will be 
divided among three divisions, of compliance, enforce- 
ment and code authority procedure. Sinndtaneously, 
the legal division will be enlarged in anticipation of the 
institution of numerous court cases to enforce observa- 
tion of codes and ])rosecute violators. 

The change in operations of the administration 
will be marked by the establishment of new policy 
boards for labor, trade ])ractices and code authorities, 
the membership of which will include re])resentative8 
of the labor, industrial and consumer advisory boards 
and the planning and research and legal divisions. 
These boards will pass on such problems as may arise 
under codes with a view to developing uniform policies 
for general application. 

At the same time, labor and consumer adviserH 
will be appointed for the Government members of all 
code authorities and all industries wliich do not now 
have such agencies will be required to create indus- 
trial relations committx?es or boards for the adjust- 
ment of labor complaints and disputes. 

The labor and consumer advisers to the adminis- 
tration members of the code authorities will have no 
vote and will attend meetings only on invitation ; they 




will, however, have free access to the minutes of all 
meetings and the right to appear before code authori- 
ties to make statements on specific subjects. 

The ])roposed industrial relations bodies are de- 
signed to carry out the administration's plan for en- 
forcement of compliance and settlement of dis])utes 
by industry itself. The administration member of the 
code authority will be a member of such board, without 
vote. 

Ct] Cj3 Ct] 

LLMIXATIOX of deception in the sale of ** fac- 
tory throw-outs" has been agreed to by 
twenty-four cigar nuniufacturers signing 
stipulations with the Federal Trade Commis- 
sion, it was announced by the commission April 7th. 
The stipulations havinir been negotiated before the 
adoption of the conunission's new policy of ])ublicity 
in such cases, the names of the companies involved 
were not revealed. 

It was explained by the commission that cboap- 
grade cigars manufactured regularly for the two-for- 
a-nickel trade were sold as *' factory throw-outs,'* 
which implied they were high-grade cigars sold at low 
prices because of minor imperfections. 

Companies making only one line of cigars, to be 
sold regularly at low ])rices, were found to be advertis- 
ing them as throw-outs, so as to indicate erroneously 
that the price had been reduced. One factory was 
found to be manufacturing about 10,(H)0 "throw-outs** 
a dav. 

CJ3 Cj3 Ct) 

hlXAL decision as to whether the licensing pro- 
visions of the Xational Recovery Act are to be 
extended for another year will be made by 
President Roosevelt in the near future. 
Although the licensing power has never been in- 
voked, the President is rej)resented as feeling that it is 
a powerful weapon which should be retained in the law. 
Unless Congress takes action to ])erpetuate them, Jiow- 
(vrr, the licensing i)rovisions of the act will exi)ire in 
June. 

Recovery Administrator Hugh S. Johnson and his 
advisers favor letting the licensing provisions die 
ratlicr than to oj)en tlie recovery act for amendment, 
fearing that Congress would not be content to pass 
upon that one feature only but would insist upon broad 
changes in other sections of tho law. 

However, it was said at the recovery administra- 
tion, General Johnson will make no recommendations 





garettes 



There are 6 types 
of home-grown tobaccos 
that are best for cigarettes 

Bright tobaccos 

U. S. Types 11, 12, 13, 14- 
produced in Virginia, North and 
South Carolina, and parts of 
Georgia, Florida and Alabama. 

BURLET TOBACCO 

U. S. Type 31 -produced in 
Kentucky. 

Maryland tobacco 

U. S. Type 32 -produced in 
Southern Maryland. 

These are the kinds of home- 
grown tobaccos used for mak- 
ing Chesterfield Cigarettes. 

Then Chesterfield adds aro- 
matic Turkish tobacco to give 
just the right seasoning or spice. 

Chesterfield ages these 
tobaccos for 30 months 
^2% years — to make 
sure that they are milder 
and taste better. 




Tobacco being iold at auction 
on a Southern markiL 



the ctaareffe Ihati milder 
tne CiMreUe tnat 

TASTES BETTER 



C^hesterfi 




® 19M. LiGCBTT & Mybu Tobac<» Co. 



(Continued on Page 12) 



Th€ Tobacco World 



^prU IS, 1934 



it 



News from Congress 

(Coniiuned from Page 10) 




one wav or tlie oilier but will leave the decision entirely 
to the President. 

Cfj Ct3 C?3 

OSSIBLE niin of nianiit'acturors who have in- 
creased their production under the i)rotection 
of tarilT duties or quarantine orders is seen 
bv Senator Metcalf of Khode Island in the 
pending bill giving the l*rcsident full control of the 
tariff. 

Attacking the measure on the floor of the Senate, 
]\Ir. ]\Ietcalf declared the bill to be a long step toward 
*'a complete abdication of lei::islative ])owers to the 
Executive," ])ointing out that under it not only may 
the President raise and lower duties at will but also 
nuiy remove com])letely all excise taxes, processing 
taxes and restrictions which have for their purjmse the 
rci-ulation of imports. 

*'Under this bill," he told the Senate, *'the Presi- 
dent of the United States can, by sim])le proclamation, 
increase the tarill' by oO ])er cent, ov lower it by 50 ])er 
cent. He can, by a single stroke of his pen, eliminate 
excise taxes levied bv the Uonufress of the United 
States. He can remove restiictio?is on the im])ortation 
of diseased ])lants and animals; he can waive embar- 
goes on agricultural i)lanls which, foi' vaiicnis reasons, 
might l)e barred from the United States. 

**If ever a lull was introduced in Congress carry- 
ing such a drastic abdication of the ]K)wers of (Con- 
gress, I should like to know of it. 1 have always be- 
lieved that the tarilT sh(»uld be flexible. Uonditions 
mav arise where the raisimr or lowering of a dutv 
might become advisable, but the exercise of such 
powders should take place only after a bi])artisan fact- 
finding body has carjL'fully studied the need for specific 
changes in tariff rates. 

"This act," the Senator asserted, ** places in the 
hands of the President the power to auction off to for- 
eign countries anv American industry which is in anv 
manner dependent ui)on a taritT for its existence. He 
can say to any foreign country: 'Here is an industry 
which I would like to get rid of. 'NMiat will you bid for 
it?' How can we consent to such dictatorship? AVhy, 
Soviet Russia could fpiite easily use our law books 
as textbooks on radical craftmanship. " 




11-INCH RULING REVOKED 

EURETARY of the Treasury Morgenthau has 
revoked a ruling of the Bureau of Internal 
Revenue permitting the Axton-Fisher Tobacco 
Co. to ])lace on the market the Head Play cig- 
arette, Avhich measures eleven inches long and of which 
five cigarettes arc "ontained in each package. The cig- 
arettes may l)e cut up into twenty cigarettes. The com- 
pany has been advised that it will l)e given an oppor- 
tunity before the effective date for the revocation to 
dispose of materials for this tyi)e of cigarette. 

^Mien the Axton-Fisher Tobacco Co. decided in 
December to place this cigarette on the market, it first 
obtained the approval of the Internal Revenue Bureau. 
The Secretary of the Treasury has ruled in revoking 

19 



this approval that packing cigarettes in this manner 
results in an evasion of the Revenue Act. 

The eleven-inch cigarettes are manufactured to 
retail at 8 cents per package. Col. AVood F. Axton, 
]n'esident of the company, said that a survey had been 
made which showed that 67 ])er cent, of the purchasers 
of this cigarette were persons who formerly rolled their 
own, using tobacco on which a revenue of only 18 cents 
per j30und was paid, whereas in the case of Head Play 
cigarettes the Government derived a revenue of $7.20 
per thousand. 

The ruling said that the long cigarettes, which are 
"capable of being divided into four parts containing 
in all twenty cigarettes of standard size should not hav(* 
been ])laced in a class where the tax per package ^vas 
only 3.r) cents, com]^ared to the tax of 6 cents placed 
on standard packs of twenty." 




EQUALIZING PAYMENT REQUESTS 

O OBTATX ])rice-e(pializing payments offered 
under the Agricultural Adjustment Adminis- 
tration's ])rogram for flue-cured tobacco, 
growers who have signed tlie adjustment con- 
tracts were recpiired to file with County Extension 
agents their reipie^ts for the forms on which to render 
ccrtifled reports of their tobacco sales, before March 
^ilst. They also had to flle theii- ai)i)lications for the 
e<pudization jmyments before that date. 

The })rice-e(p]alizing })ayments are l2() per cent, on 
that j)ortion of the net sales value of the VXy,\ crop 
sold before Septend)er 25th, and 10 })er cent, of tin* 
net sales value of such tobacco sold after Septend>er 
2r)tli and before the nuirked increase in ])rice which 
resulted from the sign-uj) and flue-cured marketing 
agreement. The purpose of tiiesc ])ayments is to com- 
]>ensate, insofar as ])Ossible, ])roducers who sold their 
crop before imi>rovement in j)rices. 

Since I)ecend)er 10th, cojjies of the record of suc]<. 
sales, taken from warehouse records and showing the 
sales of each grower during the ])eriod in question, 
have been assend)led in the states mentioned. To date, 
more than r)0,000 j)ro(lucers have been suj)plied with 
these records. 




RELIEF FOR DISTRESED CO.'S 

OTIX(i to make a favorable report on legisla- 
tion alrea<ly passed l)y the House of Rcpre 
sentatives, the Senate judiciary c-onnnittef 
last month brought a step nearer the anu'nd- 
ment of the bankruptcy law to ])rovide relief for dis- 
tressed corporations, lender the measure, corjjora 
tions unable to meet their debts are to be granted tlu* 
same privileges as have already been extended to in 
dividual business men, farmers and railroads by legis 
lation enacted last session. 

Based on the theory that i)lacing corporations in 
bankruptcy proceedings usually resulted in closing 
down the business, with loss to creditors an<l stock- 
holders and increased unemployment, the bill provides 
that embarrassed corporations may flle ])etitions with 
bankruptcy courts and reorganize, scaling down the in 
terests of creditors and stockholders to a }»oint whert 
the company has a chance to i)ull through. 

As a protection for stockholders and creditors, 
however, it is ])rovided that no plan of reorganization 
shall be confirmed by the bankruptcy court unless two 
thirds of each class of creditors and a majority of the 
stockholders give their approval in writing. 

Tht Tobacco World 




Better conditions are reflecting 
themselves in a bigger demand 
for quality cigars. All through 
the depression the makers of 
El Product© have fought the 
battle for quality merchandise. 
Display quality cigars — talk 
quality cigars — offer quality 
cigars — and count on El 
Producto to back your judg- 
ment on quality every time. 




ir 



aB«r*cicAKCo.,iKC.,ruiiJL,rA. 



EL PRODUaO 

for real enjoyment '\r\ cents 



X^^ AND UP 



Essential Provisions of Cigar Code 



{Continued 

I'acturers, memhers of the Associated Cigar Manufac- 
turers and Leaf Tohacco Dealers, tw^o additional manu- 
facturers, one hand and one machine, who are non- 
memhers of the Associatiou, one memher appointed by 
the Labor Advisory Board of the XRA and four addi- 
tional members who may be appointed by the Secretary 
of Agriculture and the Tobacco Administrator. 

Sales by Manufacturers — A manufacturer may 
estjd)lish the retail price of his cigars, which must be 
filed with the Code authority, with his credit terms and 
discounts. He mav allow the following discounts: To 
retailers other than chain stores, 20 to 28 per cent. To 
accredited jobl)ers, an additional discount of 8 to 14 
per cent. To service job])ers, a discount equal to that 
Kiven retailers ])lus (>5 per cent, of the discount to 
accredited jobbers. Where the manufacturer has no 
accredited joliber he may allow a service jobber the 
retail discount plus 10 per cent. Drop shipments of not 
less than 200t) A, R, C, and D or 1000 Class E cigars 
arc jjermissible, where the accredited jobber agrees, 
with a 5 per cent, discount to the drop shipment buyer 
above the retailer discount to be allowed by the jobber 
(»r manufacturer, whichever shall make the billing. A 
service credit may l)e allowed the accredited jobber on 
such drop shipments, provided the total discounts do 
not exceed the discount provided for accredited job- 
bers, plus the retailer discount. Chain stores may re- 
ceive the same discounts as accredited jobbers. On all 
transactions described above, the manufacturer may 

AprU IS, 1934 



from Page 4) 

allow an additional discount of 2 per cent, for cash. 
Each manufacturer must maintain uniform discounts 
as regards the various classes of buyers enumerated 
above, but the service credits on drop shipments may 
vary in each individual case. 

Sales by Jobbers to Sub-Jobbers — Jobbers may 
allow sul)-jobbers 50 per cent, of the established dis- 
count plus 2 per cent, for cash. P'ach jobber and sub- 
jobber must allow the retailer his full discount, ranging 
from 20 to 28 per cent, plus a 2 per cent, cash discount. 
A jobber selling a chain store organization may allow 
the same discount as the manufacturer does. 

Sales by Retailers — The retailer may not allow any 
rebate or discount of any sort except that a 5 per cent, 
discount may be allowed upon sales in multiples of ten, 
of 8 per cent, upon sales of boxes of 25 or more. No 
discount may be allowed upon cigars selling at less than 
5 cents. Where the manufacturer specifies a discount 
of less than 8 per cent, upon box sales, his specification 
shall govern. Wliere a State imposes a tax on cigars, 
the full amount of the tax shall be added to the mini- 
mum prices at which cigars may be sold. 

Free deals, false advertising, deceptive branding 
are forbidden. Jobbers must be protected in their 
agreed territories. Damaged and discontinued lines of 
merchandise may be sold at less than the prescribed 
prices, but must be advertised and marked as such, 
with a strip label placed across the inside label stating 
the reason. 

IS 




HIbADEIi 



MIA. 





BAYUK BOWLERS RUNNERS-UP 

GOOD CIGAR is not the only product of the 
world's largest cigar factory, as was evidenced 
in Peoria, 111., on April 8th, when the Bayuk 
Phillies bowling team finished second among 
the Quaker City teams competing in the thirty-fourth 
annual American Bowling Congress championships. 
They scored 2678 points in their three games. The 
members of the team are AV. Cameron, E. M. Hirst, 
S. Munzer, F. Bell and J. Appel. 

George C. Runyan Tobacco Co., Sturgis, Mich., 
assisted by C. M. Brower, Bayuk salesman, is making 
nice headway in a drive for greater sales and distribu- 
tion of Bayuk brands in their territory. 

Morris Kmg Cigar Co., Bay City, Mich., is pro- 
moting an effective campaign on Phillies and other 
Bayxik products in that territory, along with George B. 
Hibbard, salesman for Bayuk. 

Peter C. Beck' Co., Racine, Wis., has joined the 
Bayuk distributing family and is already doing splen- 
did work on the brands in that sector. 

Kielson Cigar Co. has been entrusted with the dis- 
tribution and sale of Bayuk Phillies in the Cincinnati 
area. 



Met Mr. Snyder, El Producto representative, down 
town early in the week selling El Productos (and I 
mean selling). He reports a very apparent increase in 
demand for this popular brand, at ten cents and up, 
which is an unmistakable sign of better times. 



We are glad to welcome I. B. White, manager of 
the cigar department of John Wagner & Sons, back at 
headquarters this week after an absence of two weeks. 
Mr. White was home nursing a serious infection by the 
good old Streptococcic germ, but his strong constitu- 
tion easily won the battle. 



Grabosky Bros., Inc., are now comfortably in- 
stalled in their new and larger quarters at 11-13 North 
Second Street, and production on the Royalist brand 
is again able to keep up with the demand for a time. 
Indications, however, point to the fact that these larger 
quarters will soon be taxed to their capacity. 

^4 



Trade Notes 



No question about it, the Cigar Business Is Better. 



N. E. Oliver, vice-president of Philip Morris & Co., 
Ltd., was in town last week and reports a tremendous 
increase on his brand during the past few months. 



Ashton & Lones have established a retail and man- 
ufacturing stand at 937 Huntingdon Street, featuring 
the Trotter In, and their brand is being well received. 



Jacoby & Agliano are among the newcomers in the 
field at 26 North Sixth Street, having moved recently 
from 738 Arch Street. 



George Stocking, of Arango y Arango, was a vis- 
itor last week, and reports Don Sebastian making splen- 
did advances along with the business recovery move- 
ment which is now so generally in evidence. 



Harvey Hetrick has moved his retail and manufac- 
turing stand from Market Street below Second to 13 
North Seventh Street, where he is trading under the 
H & G Cigar Co., and doing a nice business. 



A. Bazarte, who is located at Franklin and Poplar 
Streets, is doing a fine business on his brands, and has 
been forced to work night and day recently to supply 
the demand for his brand. 



Among the new firms registered last week was the 
O. K. Cigar Store, at 4262 Frankford Avenue, operate*^ 
by Adam Dogas, and Fotios Dogan, of the same 
address. 

John Flanigan, of the M. J. Dalton stand at 617 
Chestnut Street, has been featuring an attractive and 
interesting window display on Bock Panatelas, which 
has been keeping this brand moving across his counter 
in lively fashion. This display is being featured also 
in all Yahn & McDonnell stands throughout the city 
this week with gratifying results. 

Thg Tobacco WoHd 





SnokingTobacco 



f OR 



PIPEanoOAARETTES 






H'tis^'-Mtfirs 



MAYBE it*s the way we mildly mentholate KOOLS, maybe it's 
the cork tips, maybe it's the extra-choice blending of fine 
tobaccos, maybe it's the advertising, but KOOLS are certainly 
going UP. . . UP. . . UP. . . IN POPULARITY. Every month since 
they were introduced, sales have shown a most spectacular climb. 
Stock KOOLS. There's a nice, quick, steady profit in them. 

BROWN & WILLIAMSON TOBACCO CORP., LOUISVILLE, KENTUCKY 

Brown bk Williamson products have been designed to bring you the most profit in all lines and 
prices. New products are added to fit the times. Are you getting your share of profit from these live, 
selling items: EHal Smoking Tobacco, Sir Walter Raleigh Smokmg Tobacco, Raleigh Cigarettes, 
Wings Cigarettes. Golden Grain Tobacco.Target Cigarette Tobacco and Bugler Cigarette Tobacco. 





TlM CaN •! tiM Tlwmy S< 



^Pril /5, /pj4 



1$ 



ARGUMENT FOR TAX REDUCTION 

(Continued from Page 6) 

How iiiaiiv new coiisiniiors of cinarottos would be 
created by this ]»o|»ular i)iiee is beyond, or at least in- 
capable of, estimation. Keonoinie pressure drives 
some to roll-your-own ; it drives otiiers to the expedi- 
ent of eiirtaihnent or elimination. The cigarette 
smokers wlio are added anew, and not by conversion 
from roll-your-own, and the increased eonsum])tion by 
the ciii'arette smokers wh(» now stint in their smoking' 
for econ(>my's sake, constitute an additional market 
for farmers' tobacco, and of the high grades that are 
used in cigarettes. One who realizes tlie ]»ulling ])ower 
of the 10-cent ])rice as anyone in the trade realizes it, 
will believe that with that 10-cent ])riee for standard 
cigarettes tliere would be a quick increase of more than 
12,000,1)00,(100 cigarettes consumed l)y new smokers or 
by increased consumi^tion ])y present smokers. This 
means— adding to the :kS,(H)o',000,000 the 12,000,000,0(M) 
— 50,000,000,000 more cigarettes, ]>arTly in reduction 
cf roll-your-own cigarette eonsumption and ])art]y in 
new consum])tion. Cigarettes are ])rinci])ally of do- 
mestic tobacco. AVith a duty of X^ cents ])er pound 
on Turkish tol)acco, to sav nothing of the cost of the 

' ft *■ ^ 

tobacco itself, the manufacturers of standard cigar- 
ettes put into their eigarettes only such a i)ioj)ortion 
of Turkish tobacco as will bring to their cigarettes the 
greatest ])ossible ])oj)ularity, and this they ought to 
continue to put in for the l)enefit of the domestic leaf 
growers themselves. The maximum weight of cigar- 
ettes in order to carry a $3 ]ier thousan<l tax, is three 
pounds })er thousand, and eomi^etition brings an ap- 
proximation to that maximum. The to])acco as bought 
from the farmer loses weiirht bv stennning and bv 
drying, so, according to the best estimate I can gel^ 
there are a])proximately, or very nearly, three ])Ounds, 
farmer's weight, domestic tobacco in every thousand 
cigarettes, or, on that basis, for 50,000,000,000 cigar- 
ettes ir)0,000,000 ]x)unds of tobacco, ])artly, it is true, a 
demand for higher grades of tobacco taken fiom the 
demand tor lower grades, but partly a new demand. 

I want to deal with this connnittee not only truth- 
fullv in mv statement of faets, ]>ut franklv in mv ex- 
pression of ojunion, for whatever that opinion may be 
worth. An addition to the domestic <'onsumi)tio]i of 
domestic grown tol)aeeo of more tlian 1. ')(>,( ^00, 000 
pounds, woidd be, in my judgment, a great boon to 
the tobacco farmers, l^ut, even so, farmers are likely 
to be disappointed in the ultimate outeome unless two 
things, ditfering in relative imjmrtance, occur. One is 
the maintenance and extension of foreiirn markets for 
our leaf, because in many ty|)es ex])ort demands are 
important — full 40 ]»er cent, of our total leaf ])roduc- 
tion is normally exported. The other, an<l im])era- 
tivelv necessarv, is the establishment, bv co-oi)eration 

ft • ' ^ • I 

among farmers, spontaneously or by governmental 
persuasion and aid, of something a])proaching a corre- 
spondence and co-ordination V)etween the su])ply of leaf 
tobacco and the demand for it, domestic and for export. 
The working out of such coj'ies])ondence and co-ordi- 
nation between su]iply and demand has its heart-break- 
ing incidents at the best. When the farmer, whose life 
and family and l)aiiis and ecpiipment are all pitched 
on a ten-acre ]»roduction, is brought to cut his acreage 
to five, hi^ adjustments are difiicult. It is im]»ossible 
to overemphasize the relief that would be given in re- 
ducing the number and the severity of tliese readjust- 
ments if Congress, by its revision of the tax structure, 

i6 



can add 150,000,000 pounds of leaf to the domestic de- 
mand. 

I now speak of the Government and its revenues. 
There is no blinking the fact that on i)aper, and assum- 
ing no increase nor change in consumption of tobacco 
jn'oducts as the result of sucli reduction, our sugges- 
tion of tax reduction on tobacco and cigarettes would 
involve a loss of revenue to the government, based on 
the 1933 ligures, of JJ^15(;,000,000.' What would be the 
secondary effect? Koll-your-own cigarettes are loosely 
rolled and, as I have told vou, consume less tobacco 
than is consumed in the ready-nuide cigarettes. A 
manufacturer of a tobacco used in roll-vour-own cigar- 
ettes has advertised, and I have no doubt truthfully, 
that a pound of his tobacco will nuike over (iOO cigar- 
ettes. I have been and am conservative, though, and 
again estinuite that the roll-vour-own cigarettes con- 
sume two jiounds ]»er tliousand. It seems to me, as I 
have said, that the elTect of this change of tax will be 
very quickly to convert 38,000,000,00() at i)resent roll- 
your-own cigarettes into ready-made cigarettes. In the 
form of roll-your-own cigarettes there is a consuniption 
of 76,000,000 ])ounds of tobacco in 38,000,000,000 cigar- 
ettes. This tol)acco at 18 cents ])er ])ound pavs a reve- 
nue of $13,680,000; but these 38,000,000,000 cigarettes 
on the basis of $1.80 jkm* thousand, the tax we suggest, 
would bring a revenue of $68,400,000, or an increase of 
$54,720,000. Then let us add the 12,000,000,000 of new 
cigarette consumers not taken from roll-your-own, at 
$1.80 per thousand, and vou have a further addition of 
$21,600,000, or a total of $76,320,000, which is well on 
the way to a restoration of governmental revenue to 
what it would have been if the reduction had not oc- 
curred. All of this is a (piick effect, and it says nothing 
of any increased consum])tion of tobacco in forms 
other than cigarettes to make up the increase in reve- 
nue from the tobacco tax reduction, although that to- 
l)acco tax reduction Avas taken into account in arriving 
at the amount of innnediate loss of revenue. Let me 
state mv conviction concretelv: A little more than 
two years ago T had the privilege of ap]iearing before 
the Ways and Means Connnittee to oppose a suggested 
increase in the already too high taxes on tobacco and 
cigarettes. Not because of anything T said, but be- 
cause of what others said, and, above all, because of 
the manifest unwisdrmi of such increase, no increase 
was made. If at that time T had had the courage and 
the vision to urge uv)on you the reduction of the rates 
that I now urge, and if the Congress had had the cour- 
age and vision to nuike that reduction, T believe the 
revenue return to the government, possible in the year 
1934, and certainly in the year 1935, would be just as 
large as it will be under present tax rates, if these 
present rates continue. T come back, then, to the state- 
ment which T nuule earlier, that the loss of revenue 
involved in the ado])tion of the suggestion that we make 
would be tem])orary so as to make the reduction in fact, 
though not in nam(% an emergency measure. 

There is another large class of our peo])le whose 
interests I shall not discuss at substaidial lenirth. T 
am l)rief, not because T am not interested, but because 
the storv is shortlv told, and it is easv for such discus 
sion to degenerate into the maudlin and the insincere. 
T mean the consumers. The time has passed, it seems 
to me, when a thing is to ])e deemed immoral only be- 
cause it is a j)leasure. and when ]>hysical advantatre or 
disadvantage is by intelligent men, even physicians, 
thought to l)e measured only by chemical reaction or 
the number of calories consumed. Tf the smokers of 

Th€ Tobacco World 



cigarettes pay, as they would pay under our sugges- 
tion, on a package of twenty cigarettes, a 10-cent pur- 
chase, and as for most of them a day's supply, over 
;]'/ii-cent tax, or, a year's consumption, a tax of over 
$11, 1 think they wdl be paying enough. If tlie con- 
dinners of tobacco and snutf pay, not (^uite so nmch 
on average consumption as tlie cigarette consumers, 
l>ut the substantial amounts of tax they would pay 
under our suggestion, they will be paying enough, i^'or 
the life of me I do not see the difference between a 
so-called luxury and a so-called necessity so far as 
t-onsnmer tax is concerned, if both of them enter into 
liie living expenses of the ordinary man. It is jjer- 
fectly certain that the levy of an excessive tax on a 
man's smoking or chewing either does add to his living 
expenses, or does induce him to curtail or abandon an 
indulgence that is pleasant and comforting, and is not 
of hurt to his spiritual or physical welfare. 

There is one important phase of this situation 
that bears especially on the prices farmers are to get 
tor their leaf tobacco, which may, i)erhaps, be dis- 
cussed more clearly in connection with the contention 
that has been made for a ditferential in the tax on 
cigarettes based upon ditferences in their customary 
consumer price. While I shall speak frankly and 
earnestly in opposition to that ditferential, that dis- 
cussion will bear also on just how tlie rate of tax re- 
duction we suggest tits into a scheme of real farm re- 
lief. I have spoken of the appearance in January of 
representatives of just two of all the manufacturers 
of tobacco or its iiroducts. They suggested the wis- 
dom of your making a ditTerential in the tax rates 
levied on cigarettes so tiiat cigarettes selling by the 
manufacturer at a net price r)f $4.10 or less and retail- 
ing at 10 cents or less should bear a tax of $2.70 ])er 
thousand; those with a net manufacturer's price of 
more than $4.10 but not more than $6 with a retail 
price of more than 10 cents and not more than 15 cents 
a tax of $3 per thousand, the present rate; and those 
cigarettes with a manufacturer's net selling price of 
over $6 and i)resuinably a retail price of more than 15 
cents, $3.30. 

We think their suggestion is unsound from the 
point of view of the tol)acco industry, and we think 
it is especially unsound from the point of view of the 
tobacco growers. We think that for the cigarette 
husiness of this country to be put out on a 10-cent con- 
sumer i)rice, with any tax sucli as $3 or $2.70, or in- 
deed with any lax higher than $1.80, is incoinpatible 
with a fair juice for leaf tobacco. To our minds, the 
projmsal to \n\i this cheap cigarette into the king's 
cliair — to make it the cigarette that tits into our cur- 
i-eiicv as none other does — without complete and care- 
ful readjustment of the entire tax rate structure, car- 
lies more menace to the tobacco growers of this coun- 
trv than has ever ludore been seriously proposed to a 

ft 

legislative body. 

The forcfioltui i< n transcr\f>i <>/ a statement before a Suh-Cnmmitlec 
of the House Ways and Means Comtnittee by Junius Parker, li'ho 
represented the folliPuHnii manufacturers of tobacco, snuff and cu/arettes: 
.Imerican Snuff Company. The .Imerhan Tobacco Comfniny. liendixen 
Tobacco Company. Benson & Ilednes, The Hl-uh Ifros. Tobacco Com- 
pany, liy field Snuff Company. Continental .> Company. Critnson 
Coach Incorporated. De \obili Cif/ar Company, Da'Ad I'orry Tobacco 
Company. Ceonie il'. llelme Company, Larus .'- Brother Company. Liij- 
ih-it .'- Mxers Tobacco Cotnpany. V. I.orillard Company. Thilip ^forris & 
Co., Ltd.. Venn Tobacco Company, R. J. Reynolds Tobaeco Company. 
R\an Hampton Tobacco Company. Scott Tobacco Company. Scotten- 
Jiillon Companv. Taylor Brothers Tobacco Company and Cnited States 
Tobacco Cotnpany. 

April 15, W34 




ILLIAN RUSSELL 

2 
for 

5c 




U. S. BOND 

2 /% 



CIGARS 




CIGAR 



P. LORILLARD GO'S 
Quality 

2 '»■■ ^^ 

Cigars 

Meeting the public* s demand 
for quality cigars 
moderately priced 



NLW 

CURRENCY 

CIGARS 




2 

for 

5c 



*Our Other Popular 2 for 5*^ Cigars 
JAMES G. BLAINE • • POSTMASTER 
LA FRAOSA • SARONA • WAR EAGLE 



TOBACCO TEADE ORGANIZATIONS 



TOBACCO MEKCHANTS ASSOCIATION 
OF UNITED STATES 



<^^ 



N. Y. 



N 
X 



JESSE A. BLOCn. WhcelitiR. W. Va. 
flLILS LICHTENSTEIN. New York. 
WILLIAM BEST. New York. N. Y. .. 
MAJ. (JEORGE W. HILL. New York 
(;E0RGE il HLMMELL. New York 

IL IL SH ELTON. WashinRton. D. (' 

WILLIAM T. REED. Richmond. Va 

HARVEY L. HIRST, Philadelphia. Pa. 

ASA LEMLEIN". New York. N. Y 

CHARLES DUSHKIND. New York. N. Y. 
Headtiuarters, 341 Madison 



Y. 
Y. 



Ave 



President 

, Vice-President 

..Chairman Executive Committee 

Vice-President 

Vice-President 

Vice-President 

Vice-President 

Vice- President 

, Treasurer 

isel and Managing Director 
York City 



.Coun« 
New 



RETAIL TOBACCO DEALERS OF AMERICA. INC. 

WILLIAM A. HOLLINGSWORTH. 233 Broadway New York, N. Y President 

( LIFFORD N. DAWSON, Buffalo. N. Y Executive Vice-President 

JAMES C. THOMPSON. Chicago. Ill Treasurer 

ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS 



lOHN H. DCYS. New York City 
MILTON RANCK, I^ncaster, Pa. 
D. EMIL KLEIN. New York City 
LEE SAMUELS. New York City 



.President 
. . . First Vice-President 
Second Vice-President 
. . . .Secretary-Treasurer 



NATIONAL BOARD OF TOBACCO SALESMEN'S 

ASSOCIATIONS 

President 

First Vice-President 

Second Vice-President 

Secretary 



ABE BROWN. 180 Grumman Ave., Newark, N. J 

ALBERT FREEMAN. New York. N. Y 

IRVEN M. MOSS, Trenton, N. J 

A. STERNBERG, Newark, N. J 



RETAIL CIGAR STORE ASSOCIATION OF PHILADELPHIA 

MORRIS LEVITONE • •■• President 

SAMUEL MAGID, 2iJ01 N. Mervine St.. Philadelphia, Pa Secretary 



.President 
.Secretary 
.Treasurer 



THE NATIONAL ASSOCIATIONS OF TOBACCO 
DISTRIBUTORS. INC. 

E ASBURY DAVIS, Baltimore, Md -^ 

JOSEPH KOLODNY. 200 Fifth Ave.. New York. N. \ 

GEO. B. SCRAMBLING, Cleveland, Ohio 

UNITED STATES TOBACCO DISTRIBUTORS ASSOCIATION 

TOITN F BROWN President 

IIERMAN H. YAFFE,.K>1 Fox Building, Philadelphia, Pa Secretary 



MAY 1, 1934 



Establiihed 1886 



"BEST OF THE BEST" 




^^^±^ A. SANTAELLA & CO. 

Office, 1181 Broadway, New York City 

FACTORIES: Tampa and K«p West, Florida 



OUR HIGH-GRADE NON-EVAPORATING 

CIGAR FLAVORS 

Make tobacco meUow and amooth in charactar 
and impart a most palatable flavor 

FUYORS FOR SMOKING md CHEWING TOBACCO 

Write for Llat of Flavors for Special Brands 
BKTUN. AIOMATIZEI. BOX FLAVOKS. PASTE SWEETENEU 

FRIES & BRO., 92 Reade Street. Ne%y York 



.:v»A"A«A".w,'y«/J'A»A«A»^' • • • /^•>'"«/"V»>!'LX»A"A»A':vfy:ix»y:^tyt-kf>"v»y::,v»/ 



Classified Column 

The rate foi this column is three cents (3c.) s word, with 
a minimum charge of seventy-five cents (75c.) payabls 
strictly in advance. 



«ir«vir«vir«rtr«xir78riri«xinrsrir)«xirrix:rn^ 



POSITION WANTED 



CIGAR SALESMAN COVERING EASTERN PENNSYLVA- 
NIA and Local Territory desires connection. Large following. 
Address Box No. 580, "The Tobacco World." 

Newspaper and magazine advertising executive, thoroughly 
experienced, formerly with local newspapers and agencies, and aUo 
advertising manager. Position with firm desiring an advertising man, 
salesman or assistant to manager. Knows marketing, merchandis- 
ing and distribution. Salary not as important as opportunity to 
demonstrate actual worth and ability. References the highest 
Address, F. H. Riordan, 5915 Webster Street, Philadelphia, Pa. 

CIGAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON 
Automatic Machines, wants a position. Also instructs beginners. 
Address Box No. 558, "The Tobacco World." 

FOR RENT 

OFFICE AND FLOORS FOR CIGAR MANUFACTURING OR 
STORAGE — No parking restrictions; good location; low rent; 
freight elevator and loading platform. Will divide. Metals Coating 
Company of America, 495 North Third Street, Philadelphia. 



HAVANA CIGARS 



BEER WITHOUT CIGARS, IS LIKE KISSING WITHOUT 
LOVE — Adopt as your slogan, "Kiss your beer, but love your ci- 
gars." Specially those Havana blended, "Good to the last Puff," 
manufactured by A. Ramirez & Co., Post Office Box 1168, Tampa, 
Fla. Write them for particulars today. 



Tobacco Merchants' Association 
Registration Bureau, JtVlrokTa^ 

Schedule of Rates for Trade-Mark Services 
Effective April 1, 1916. 



Registration, 

Search, 

Transfer, 

Duplicate Certificate, 



(see Note A), 
(see Note B), 



$5.00 
1.00 
2.00 
2.00 



Note A— An allowance of $2 will be made to members of the Tobacco Mer- 
chants' Association on each registration. 

Note B— If a report on a search of a title necessitates the reporting of more 
than ten (10) titles, but less than twenty-one (21), an additional charge of One 
Dollar ($1.00) will be made. If it necessitates the reporting of more than twenty 
(20) titles, but less than thirty-one (31), an additional charge of Two Dollars 
($2.00) will be made and so an additional charge of One Dollar ($1.00) will be 
made for every ten (10) additional titles necessarily reported. 



REGISTRATIONS 

PERKASIE:— 46,308. For cigars. April 6, 1934. H. E. Snyder 
Cigar Co.. Perkasie. Pa. 

BLACK AND WHITE:— 46,309. For cigarettes. April 6. 1934. 
National Cigar Stands Co., New York. N. Y. (This certificate is 
issued upon presentation made to us that the trade name or trade- 
mark herein specified, though apparently not heretofore registered 
in any of our Affiliated Bureaus has been in use by the registrant 
since April, 1917.) 



TRANSFERRED REGISTRATION 

SIXPENCE:— 38,472 (United Registration Bureau). For cigars, 
cigarettes and tobacco. Registered December 12, 1913, by Julius 
Bien Co., New York. N. Y. Transferred by Consolidated Litho. 
Corp., Brooklyn, N. Y., successors to the original registrants, to 
Thompson & Co., Tampa, Fla., March 20, 1934. 

Brigfifs Smoking Tobacco (P. Lorillard Co.) con- 
tinues to forp:e ahead, and the local distributors (Yahn 
& McDonnell) have been forced to increase their stand- 
ing order to keep a sufficient supply on hand to meet 
the demand. 



J. Freed has established a retail and manufactnr- 
inj? stand at 148 North Thirteenth Street, under the 
name of the New Era Cigar Co., and featuring the New 
Era and El Jewel at ten cents and up, and the New Era 
at two for five cents. 



James Heaney, sales representative of the Ameri- 
can Tobacco Company, was in town last week intro- 
ducing William Anderson to the trade. Mr. Anderson 
will be stationed in this territory promoting Antonio y 
Cleopatra and the Bock line through Yahn & McDon- 
nell local distributors. 



"What a 


welcome visitor 


The To 


BACco World 


must be to wholesalers and 


retailers ! 




"U they 


are only half as 


interested 


in reading it as 


we ourselves are, we're glad 


our ad is 


in it regularly" — 




says an advertiser. 




'n 



The importance of attractive and dependable containers for 
fine cigars is recognized by the progressive cigar manufacturer. 

Generally the brands that are increasing their goodwill in this 
present analytical market are packed in the new improved 
AUTOKRAFT cigar boxes. 

Cigar Manufacturers who have not investigated the value of 
the merits and economies of the splendid and inviting package 
may obtain complete details promptly by addressing the 

AUTOKRAFT BOX CORPORATION. 



Phila., Pa. 
Hanover, Pa. 
Cincinnati, Ohio 



AUTOKRAFT BOX CORPORATION ^ J^^^ ,-, 

Lima Ohio Detroit. Mich. 

A Nationwide Service Wheeling, W. Va. 




iiiiiniiiiiinimiiniiiiK 




UBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA.. PA. 




WOODEN BOXES 

Are the Only Natural Humidor for Cigars. 



Pack yoi» cigars in wooden boxes and preserve 
their delicate aroma, mellowness and flavor 
right up to the time they are passed over the 
counter to the customer. 

Discriminating cigar smokers prefer to select 
their favorite brand from a wooden box and it's 
good business to cater to the dealer and con- 
sumer by packing your cigars in wooden boxes. 



WHEN BUYING CIGARS 

Remember r <jr Regjrdleu of PrK« 

THE BEST CIGARS 

ARE rUlLfJ} IN 

WOODEN BOXES 





THE TOBACCO WORLD 



Vol. 54 



MAY 1. 1934 



No. 9 



Code of Fair Competition for the 
Cigar Manufacturing Industry 

As Presented for N R A Consideration and Approval 




T IS coiiHdoiilly hoped that the (\>(lo of Fair 
Coni])otition I'or the ('*m:ar Manufacturing In- 
dustry will have heen approved before tlie next 
issue of The Tobacco Would is i)ublislied. In 
ihe followini^ pa,i»es is detailed the form in which the 
(^ode was finally ai^reed u])on, to be })resented to Gen- 
eral Johnson for his consideration and ai)i)roj)riate 
action. Any chan.i;es which are introduced before ap- 
proval will be noted in a later issue. We suji:jj;est that 
our readers ])reserve this issue, containinjjc first publi- 
cation of the C^ode as submitted. 

ARTICLE I. 

Purposes. 

To effectuate the ])olicies of Title I of the National 
Industrial Recovery Act, this Code is established as a 
Code of Fair Comi)etition for the Ci,<»:ar Manufacturing 
Industry, and its provisions shall be the standards of 
fair competition for such industry, and shall be bindin": 
upon every mend)er thereof. 

ARTICLE U. 

Definitions. 

As used in this Codo the following words and 

phrases shall be defined as follows: 

Section 1. The term '' I*resident" means the 
President of the United States of America. 

Section 2. The term "Administrator" means the 
Administratoi' for Industrial Recovery. 

Section 3. The term "Act" means the National 
Industrial Recovery Act. 

Section 4. The term "Ci^^ar Manufacturin.u: In- 
dustry" means and includes the manufacturin«j: into 
cii^ars of cured leaf tobacco, stenuned tobacco, ^crap, 
ami or shredded filler for use in the manufacture for 

sale of ci«<ars. 

Section 5. The term "ciirar" nieans an<l mchides 
ciirars, stogies, cheroots and little cij^^ars. 

Section 0. The term "member of the industry," 
"manufacturer" and "cigar manufacturer" means 
and includes without limitation any person engaged 
either as ai\ employer or for his or its own account in 
the Cigar Manufacturing Industry. 

Section 7. The term "em])loyee" means and in- 
cludes anv and all persons engaged in the industry, 
however compensated, except a mend)er of the industry. 



Section 8. The term "employer" means and in- 
cludes any person by whom any such employee is com- 
I)ensated or employed. 

Section 9. The term "productive employee" 
means and includes any employee working in the fac- 
tory and included in the factory payroll, and governed 
bv the factorv regulations. 

Section 10. The term "unskilled labor" means 
and includes conunon labor not requiring previous 
training and excludes hand and machine cigar makers, 
packers, strippers, inspectors, binders and cellophane 
operators. 

Section 11. The term ''watchman" means and 
includes an emi)loyee who for not less than ninety (90) 
percent of his working hours is engaged in watching 
and guarding the premises of the establishment. 

Section 12. The term "deliveryman" means and 
includes an employee whose principal function is the 
deliverv of merchandise, and who does not sell. 

Section 13. The term "outside salesman" means 
and includes any salesman who performs principally 
the selling function, and who may deliver. 



Section 14. The term 



( i 



South" means 



and 



in- 



cludes the following states: Alabama, Arkansas, Flor- 
ida, Georgia, Kentucky, Louisiana, Mississippi, North 
Ccirolina, South Carolina, Tennessee, Texas and Vir- 
ginia. 

Section 15. The term "Accredited Cigar Jobber" 
means and includes any wholesale distributor of cigars 
who maintains a sales organization and has an exclu- 
sive selling arrangement for a brand or brands of 
cigars for which he assumes the responsibility of pro- 
motion, distribution and care in a definite territory 
assigned to him. 

Section 16. The term ''Cigar Service Jobber" 
means and includes any wholesale distributor of cigars 
other than an Accredited Cigar Jobber. (A jobber may 
l)e an accredited cigar jobber as to a certain brand or 
brands and a cigar service jobber as to others.) 

Section 17. The term "Sub-jobber" means and 
includes anv person performing the functions of a 
wholesale distributor of cigars, who purchases some or 
all of his cigars from jobbers or jobbing establishments 
of manufacturers instead of directly from manufac- 

turers. 

(A person may be a jobber as to certain cigars and 

a sub-jobber as to others.) 



The TOBACCO WORLD (ejUblUhed .881) i, P-b'jf.»'<^,'^[J^b«"pWoVl'^-^^^^^^^^^ 

Id B. Hankins, Secretary. Office, 236 Chestnut Street Phijadelphia Pa Issued on second-class mail matter. 



fbYe*o1..y-."!hrVgrg7d13'th.Tb^Vo-^nd:sT,^^^^^^^^^ 

DecemStr 227 1909, at the Post Office. Philadelphia. Pa., under the Act oJ March 3, 18». 



Section 18. The term "Retailor" means and in- 
clndes any dealer in eiuars who sells direetly to the 
eonsumer and not for pni poses of resale in any form. 

Section IJ). The term ''Chain of Stores'' means 
a uron]) of retail stores having- single ownei'shij) and 
maintainiim one or more hona fide central distrilnitini»- 
depots from which individnal units jire serviced, and 
also bona fide central hnyini*, sforinii, supervi.sing- and 
account inu ori»anizati()ns. 

Skction 20. The term "])erson" means and in- 
chuk's all individuals, firms, paiMnerships, unincor})o- 
rated associations, eur])orations and other forms of 
euter])risc*. 

Se( TioN 21. The term "State" meaiis any State, 
Territory and the District of Columbia. 

Section 2'2. The term "subsidiarv" means anv 
j)erson of oi- over whom a member of the industry has 
either ilirectlv oi* indirect Iv actual or lei»al control, 
whether bv stock (►wnershii) or bv an\' other manner. 

Section 2.S. The term "afliliate" means any per- 
son who has either directly or indirectly actual or lej>:al 
interest in the business of a member of the industrv, 

ft ~ 

whether throut»h stock ownership or bv anv other 

*^ 1 ft ft 

manner. 

Section '24. The term "Association" means the 
Associated Ciuar Manufacturers and Leaf Tobacco 
Dealers. 

Section 2.'). The term "Council" means National 
Tobacco Council, Inc., a New York Corjjoration, or such 
other auency as shall be desiunated for the purj)oses of 
Schedule I, hereto attached, l>v the Code Authoritv 
hereby established and by the Code Authorities for the 
Wholesale Tobacco Tiade and the Retail Tobacco 
Trade. 

ARTICLE III. 

Hours. 

Section 1. Xo clerical, account inir or other office 
em})loyees shall be ])ermitted to work in excess of forty 
(40) hours in any one week or eiuht (S) hours in any 
one day and no other employee shall l)e permitted to 
work more than forty (40) hours in any one week, 
except as follows : 

(a) Kxecutive. su])ervisory, technical and ad- 
ministrative enjployees, provided that they receive 
re<»ulaily thirty-five dollai's (H;;i').00) per week or 
more. 

(b) Outside salesmen. 

(c) Watchmen, provided that no watchman 
shall be ])ermitted to work in excess of fifty-six 
(.16) hours ])er week. 

(<1) Chauffeurs and deliverymen, provided 
that no sueh emi)loyee shall b<' jiermitted to work 
in excess of forty-eiyht (4S) hours per week. 

(e) Firemen and eiiiiineers, provided that no 
such em])loyees shall l)e permitted to work in ex- 
cess of forty-four (44) hours p<'r week. 

(f) Shii)j)in<»: department em]»loyees, provided 
that no such employee shall be ])ermitted to work 
in excess of forty-four (44) hours in any one week 
or ei.y:ht (S) hours in any one day unless paid at the 
rate of time and one-third for all time worked in 
excess thereof. 

(<i:) Pioductive em])loyees durin<r two peak 
seasons per year, provided that the number of 
weeks and the number of hours ])er wei^k in each 
season shall be determined by the Code Authority, 
subject, to the ajiproval of the Administrator. 



Section 2. Xo em])loyee except watchmen shall be 
})einutte(l to woik more than six (6) days in any seven 

(7) day i)eriod. 

Section .'>. The maximum houis fixed alcove shall 
not ai)i)ly to emi)l()yees on emer.i»ency repair work, jjro- 
vided that any such emjjloyee woi-kin.i»' in excess of ei<>lit 

(8) houi's i)er day or forty-four (44) hours ])er week 
shall be compensated by at least time and one-third for 
all such excess time. 

Section 4. All time woiked on Sundays and le^^al 
holidays, except by watchmen, eniiineers and fii*emen, 
shall be compensated at the rate of time and one-third. 

ARTICLE IV. 

Wages. 

Section 1. X"o clerical, accounting or oilier office 
em|»l()yee shall be paid at a rate of less than fifteen 
($ir).00) per week of forty (40) hours. 

Section 2. Xo watchman shall be paid at a rate 
of l«*ss than fifteen dollars (jf^lo.OO) per week of fifty-six 
(56) hours. 

Section .*?. Xo stri])])er shall be ])aid at a rate of 
less than twenty-five cents (2r)<) ))er hour, provided, 
that strii)pers that are classed are slow workers uj) 
to twenty-five per cent. (2'//; ) of the total number of 
such workers, need not leceive the minimum houily rate 
herein specified, if (1) they are ])aid the same piece 
work rate as j)aid other employees of the same class 
and (2) they are paid af a rate of not less than twenty- 
two and one-half cents (22' -c) per hour. 

Section 4. rnskilled lai)or in the Sontli shall be 
paid at a rate of not less than tweuly-live eeaU (25f ) 
per hour. 

Section 5. X"o ])roductive em|)loyee en<ia«»ed in 
tlie ])i()duction of stoi»ies or hand made ciufars to retail 
at not more than two for five cents shall be ))aid less 
than twenty-seven cents (27<*) per hour, and no machine 
ciu:ar operator enuaued in the production of cij^ars 
made to retail at not more than two foi* five cents shall 
be paid less than twenty-nine cents (2I)<*) per hour. 

Section (>. Xo ciuar maker in the Hand Made In- 
dustry, except as jirovided in i>ara,i;rai>h .'), shall be ]>aid 
at a rate of less than thirty cents i'.lO^) per hour; ex- 
cept inir in the South, in which no citrar maker in the 
Hand .Made Industrv shall be i)aid h'ss than twentv- 
ei«i:ht cents (28c) i)er hour; provided, however, that 
cijrar makers eniiaiicd in the j»roduction of ciu:ars other 
than class A and H cij^ars sludl be ]m'u\ at a rate of not 
less than four (4<*) i)er houi- in a<l«lition to the rate 
established above. 

Section 7. Xo machine operafoi- except as pro- 
vided in ]»ara^raph ') shall be paid at a rat«' of less than 
thirty-four c<»nts (.'Uf) per hour exccptinu: in the South, 
ill which no machine ci^ar maker shall be jiaid less than 
thirty-two cents (.S2(*) per hour. 

Section S. Xo em]>loyee other than those for 
whom s]»ecific i>rovision is made in this Article shall be 
paid at a rate of less than twenty-ei^ht cents (2Sc) per 

hour. 

Section !>. Ciuar makers in the Hand Cii-ar Man- 
ufacturinii and Stouie .Manufacturinir Industry who 
are classed as slow workers, up to 2')' '( of the total 
iimnber of such workers, an<l machine ciuar operators, 
up to 10'; of the total number of such workers, need 
not receive the minimum hourly rate herein specified, 
provi<led they shall be paid the same piece rate as paid 
other employees of the same class. 



(('niit'nnu'il on Pacfc s) 



Cigars Increased 64 Million in March 



\\K following; comjiarative data of tax-])aid 
products, indicated by the monthly sales of 
stami)s, are issued by the Bureau. (Fi<!:ures for 
March, 19,*U, are subject to revision until pub- 
lished in the annual report) : 
Proflifcis 




— March- 



Ciiirars (la rue) : 

Class A Xo. 

(Mass B Xo. 

(Mass C Xo. 

dass n Xo. 

Class K Xo. 



1934 

306,()58,785 

4,488,203 

39,6r)r),908 

3,082,147 

279,864 



1933 

249,231,230 

1,924,673 

34,656,138 

3,872,130 

426,901 



Total 354,164,907 290,111,072 



Xo. 20,458,013 9,44(),307 

Xo. 35,397,000 160,847 

Xo. 9,333,113,760 7,974,030,063 

.lbs. 3,825,940 2,518,475 

.lbs. 27,()52,361 24,938,566 

Tax-i)aid products from Puerto Rico (not included 

in above statement) were as follows: 



Ciuars (small) 

Cii-arettes (lar*»:e) . . 
Ci,L!:ai-ettes (small). . 
Snuff, manufactured 
Tobacco, manufact 'd 



Proihicts 
Ciuars (lart^e) 
Class A . . 
Class H .. 
dass V ., 



Xo. 
Xo. 
Xo. 



— March — 
7,9.?/ 1933 

6,271,900 1,776,900 

6,500 415,100 

61,000 5,200 



Total 



6,339,400 5,197,200 



duars (small) Xo. 

Cigarettes (large) Xo. 

Cigarettes (small) Xo. 

Tax-])aid jiroducts from 
eluded in above statement) we 

Profhtf fs 
Citrars (laru^e) : 

(lass A Xo. 

Class B Xo. 

(lass C Xo. 

Class E Xo. 



300,0(H) 550,000 

110,(MK) 30,000 

513,800 96,000 

the Phili])pines (not in- 

re as follows :. 

— March — 
U)34 1933 

20,201,785 10,521,750 



62,227 

23,400 

3(K) 



3,753 
6,900 
50 



T„tal 20,287,712 10,532,453 



Cigarettes (small) Xo. 

Tobacco, manufact 'd.. lbs. 



285,5(K) 
5 



38,900 
7 



The Tobacco World 



G. H. P. SALES MEETING 

The (i H. P. sales ori::anizations of Philadel])hia, 
Xew York and Newark met at the headquarters Satur- 
dav, April 21st, and were regaled with talks on the 
current advertising campaign and optimistic luedic- 
tions on the immediate future of the cigar business. 
Addresses were made by Frank P. Will, executive vice-- 
president; H. H. Kynett, advertising counsel; and 
I). A. .lenks, assistant sales manager. Among the sales 
executives present were .Ia<'k Cohen and William King, 
sales manauer and assistant sales manager, from Xew 
York; Frank Lvnch, sales manager from Xewark; Moe 
(Jordeii and A.' (i. Will, sales manager and assistant 
sales manager of the Philadelphia branch. 

May t, 1*^34 



Comparative Statement of Internal Revenue Collections 

for the Month of March 



1934 

$918,197.80 



Sources of Pcremie 
i ^lo*}! rt{ 

^ t j.^ CV lo ................ 

(Cigarettes 28,255,356.96 

SnutT 688,778.59 

Tobacco, chewing and 

smoking 4,977,838.73 

Cigarette ])apers and 

tubes 84,605.82 

Miscellaneous, relating to 

tobacco 258.62 



1933 
$752,635.62 
23,923,646.54 
453,325.48 

4,489,025.41 

70,804.65 

110.00 



Processing" Tax Returns 

Detail of collections from processing and related 
taxes ])roclaimed by the Secretary of Agriculture under 
authority of the Agricultural Adjustment Act (Public, 
Xo. 10, Seventy-third Congress), approved May 12, 
1933. 

Month of Total from 

March , 1934 Julif 1 , 1933 
Commoditif (Fiscal Year 1934) 

Tobacco (tax effective 
October 1, 1933): 

Processing tax . . .$2,113,479.02 
Import compensat- 

18,351.87 



ing taxes 

Floor tax, o t h e r 
than retail deal- 
ers 

Floor tax, retail 
dealers . . . 



$9,712,377.21 
110,526.72 



• • • 



2,300.88 
2,101.52 



1,801,462.68 
239,915.55 



Total, tobacco . $2,136,233.29 $11,864,282.16 



March Withdrawals, 1920 to 1932 



1920 
1921 
1922 
1!)23 
1924 
1925 



753,239,958 
561,343,699 
529,162,381 
547,514,691 
515,895,112 
504,303,979 



1926 
1927 
1928 
1929 
1930 
1931 
1932 



564,224,856 
528,697,564 
497,904,282 
491,304,798 
454,765,717 
440,472,410 
355,382,130 



BAYUK BUSINESS BITS 

Harrv S. Rice, of X. Rice Cigar C^o., Pittsburgh, 
accompanied bv Mrs. Rice, was a week-end visitor at 
BayukV . . . H. D. Soyster, Bayuk territorial mana- 
»^er for Western Pennsvlvania, visited headiiuarters to 
arrange additional shipments of Phillies in his dis- 
trict . . . K. F. Re(iuard, associated with the Neu- 
decker Tobacco Co., Baltimore, stopped off at Bayuk 's 
and reported a verv strong demand for Phillies in his 
sector . . Capital Tobacco (^o., Hartford, (^onn., is 
making marked headway in distribution voluine on 
Bavuk products ... J. P. Oiven, ButTalo territorial 
manager, calling at headcpiarters, was very enthusias- 
tic over the intensive demand for Phillies m his baili- 
wick. 



Under Billy Penn's Hat 



William P^rooinaii, of the ^fodal of Honor Cii^^ar 
Co., was a visitor hero last week. 



Eu«:cne Po])i)er, of Pojipor cK: Son. New York 
manufacturers, was in town last week calling on the 
trade. 



Joe Banker and Barton Lemlein were visitors in 
Pliiladelpliia last week, accompanied by their wives» 
en route to points in the South. 



Grabosky Bros., Inc., north Second Street, are 
forgino- ahead with theii- Royalist brand, and i^^etting 
their share of the increase in Class C consumi)tion. 

The Don Sebastian brand, distril)uted here by 
John "\Va«:ner <!v' Sons, is showing a vijiforous imi)rove- 
nient in demand. 



Steve E. Hertz, of D. Emil Klein Co., was in town 
last week in the interest of Haddon Hall. This brand 
enjoys a good demand here. 



John Wagner & Sons, Dock Street, distributors, 
report they have taken on the Carl T'pmann cigar for 
distribution in Philadelphia territory. 



Sam Adier, of Villazon & Co., dropped in on Phila- 
delphia friends last week and reported a fine increase 
on his brand here as well as in other parts o£ Hm 
country. 



As You Like It cigars are gaining in popularity as 
is shown by the increased number of orders being re- 
ceived, and a particularly gratifying fact is the increase 
in orders for class C merchandise. 



Abe Caro, 0])timo representative, was in town last 
week, wearing that smile of satisfaction, which he ex- 
plained was caused by the very apparent upturn in 
business. 



Ben Lumley, Garcia y Vega rej)resentative, has 
just returned from a trip to points south as far as 
AVashington, in the interest of his brand and reports 
one of the most successful trips he has had in a long 
time. 



Harry A. Tint, president of the Retail Tobacco 
Dealers of Philadelphia, has issued an invitation to all 
the worthwhile retailers in the Quaker City to attend a 
meeting of the association at the Hotel Adelphia, 
Thursday evening, ^May 3, at 8 o'clock. Join Up, Give 
Your Support to This Movement, and Inrttje Pi;oTKr 
TiON TO Your Business. 



Bayuk Cigars, Inc., for the first quarter of 1934, 
ending March 31st, reports net profit of $114,761 after 
depreciation. Federal taxes, etc., equal after dividend 
requirements on the 7 per cent, preferred stock, to 74 
cents a share on 90,851 no-par shares of common. This 
compares with $160,734, or $1.21 a share on 89,6fi7 
common shares in the same rpiarter of the previous 
year. 




RETAILERS' CODE AUTHORITY 

BOAKl) OF DIRECTORS' meeting of the 
Retail Tobacco Dealers of America, Inc., was 
liekl Monday, April 23d, in the offices of the 
association, 233 Broadway, New York City. 
The directors ek'cted to the board Arthur S. Meyer, 
of the D. A. Schulte (^o.; A. C. Allen, of the United 
Cigar Stores Co.; Moe Weinstein, of the Silver Ring 
Association, and Kiic Calamia, of the Independent Re- 
tail Tobacconists Association of America. These gen- 
tlemen were elected to fill vacancies in the board. 

S. S. Perry, who has for some months past been 
the Washington representative of the association, re- 
siding permanently in Washington, was elected ex- 
ecutive secretary of the association. 

The boa id also elected a number of vice-presidents, 
including the following: Fred II. Lintz, Rochester, 
X. Y. ; Fred II. Barrows, Providence, R. I.; A. V. Hen- 
derson, St. Louis, Mo.; Chas. F. La Fond, Detroit, 
Mich.; W. (J. Patterson, Birmingham, Ala.; Otto 
Heuck, Boise, Idaho; Geo. R. Curtis, Baltimore, Md.; 
Louis T. Shirk, Lincoln, Neb.; E. J. Boyle, Phoenix, 
Ariz.; A. K. Steinmeyer, Hartford, Conn.; N. D. 
Eubank, Athmta, (Ja.; R. Carl Mitchell, Washington, 
D. C. ; Walter R. Irving, Jacksonville, lia. ; Harold C. 
Dean, Wilmington, Del.; W. A. Williams, Waterloo, 
Iowa; Paul H. (iiaham, Springfield, 111.; Juan 
Dominguez, New Orleans, La.; Oscar R. Andren, Port- 
land, Me.; Fred K. Rowley, Duluth, Minn.; E. Luedke, 
St. Paul, Minn.; Raymond Carlson, Butte, Mont.; L. G. 
Verrette, Manchester, N. II.; Chas. Ilfield, Albu- 
quenpie, N. M.; James T. Nolan, Albany, N. Y.; H. A. 
Johnson, Syracuse, N. Y.; A. E. Stocker, Canton, Ohio; 
H. G. Hall, Erie, Pa.; Geo. Jones, Philadelphia, Pa.; 
R. O. Fielding, Seattle, Wash.; C. H. Demuth, Lan- 
caster, Pa.; P. W. Saville, Salt Lake City, Utah; Henry 
I), (juy, Roanoke, Va. ; H. W. Mclnemey, Cheyenne, 
Wyo. ; Larry Goodman, Milwaukee, Wis.; Louis A. 
Gretz, Los Angeles, Calif.; Henrv Strauss, Cincinnati, 
Ohio; Frank Miller, Norfolk, Va.; Carl Wilke, San 
Francisco, Calif. 

These vice-presidents will represent the associa- 
tion and assist local code authorities in their territories 
to cairy out enforcement of the Code. 

As the Retail Tobacco Dealers of America were 
designated by the Administrator to elect the tobacco 
members of the Code Authority for the retail tobacco 
industry, the board elected the following members to 
the Code Authority: Wm. A. Hollingsworth, Arthur 
S. Meyer, ClitTord M. Dawson, I. II. Lefkowitz, Joseph 
Sanderson and Louis Klein. 



TAKE ON WHEELING STOGIES 

William A. Copph', east^'ini representative for 
M. Marsli & Son, Wln-eling, W. Va., manufacturers 
ni the fainou> \Vhe(»ling Stogies, was a visitor last 
week and left with a nice vohiine of r>nlers. M r. ( 'opple 
stated that Packer Bros., distril)utors, of New York 
City, had taken on the .Marsh line for distribution in 
their territory, and also, with pardona!)h» pride, dis- 
phiyed a h»tter from factr)ry head(|uart<'rs stating that 
they were working to capacity and were so far over- 
sold that it was necessary to allot tlicir shipments to 
their various distributors. Dusel, Goo<lloc & Co., in 
Atlantic City, have also taken over th(» distribution ol" 
the Marsh line for their territorv. 

« 

Th4 Tobacco World 



Cigars Up Nearly 198 Millions in 9 Months 

— Derrpasr Total All Classes: 

First ffM<,s. i- Increase United States. .. . 3,350,091,758 + 197,966,292 

(Muars: Fiscal Yr. lu:u Quautity Puerto Rico 46,416,910 -f- 764,010 

(^ass A— Philii)pine Islands 181,105,319 + 53,783,541 

United States.... 2,854,599,485 + 286,672,520 ■ 

Puerto Kico 43,463,880 — 778,090 Grand Total 3,577,613,987 -f 252,513,843 

Philip])ine Islands 180,719,380 + 54,156,895 

Little Cigars: 

Total 3,078,782,745 + 340,051,325 United States. .. . 170,866,587 — 5,748,521 

Puerto Rico 2,330,000 — 1,274,000 

( lass B— , ^„^ , , ^ Philippine Islands 

Ignited States.... 26,339,688 - 4,232,111 ^* 

Puerto Rico 2,156,600 -f- 1,654,250 Total 173,196,587 — 7,022,521 

Philippine Islands 170,491 — 353,955 

• Cigarettes: 

Total 28,666,779 — 2,931,816 United States. ... 84,038,325,322 +7,899,719,966 

' Puerto Rico 3,549,800 + 1,210,460 

'''nti.oJ-S.a.os.... 4:n,H.8.m - 78,2.r2,750 I>l.ilip,.i- Islands _ia76J50 - 117,860 

Puerto Rico 795,430 — 111,650 rp^^^j 84,043,051,872 +7,900,812,566 

Philippine Islands 210,542 + 4,394 ; 

~~~ ' Tjar^e Ci**'arettes' 

Total 432,864,360 — 78,310,006 United States.... 72,243,700 + 70,016,916 

.,, T^_ ■ Puerto Rico 755,000 + 365,000 

SitecTstates.... 33,170,687 - 5,574,015 Philippine Islands MOO ^.^1 

Puerto Rico 1,000 - .300 ^^^^^^ 73,005,100 + 70,377,325 

Philip])ine Islands J,tMt) + «<•* 

Total nXiZ,!^! — 5,574,341 ^"" All United States. 28,384,217 + 2,907,440 

TT> ;4. 1 W4..1..W dvn'iio 697 352 Tobacco, Mfd. (lbs.) : 

I ,i,to.l StaH-s .... 4.1..5,.>1() <..H, ^^^^^^^ 230,787,876 + 5,884,029 

Puerto nico • • t^i -t • t i i 7« 199 

I'hili,,,mu. Islands 2,856 - 23,!>67 Plnl.p,.,no Islands 76 - 122 

T„i-,1 7^^6366 - 721,319 Total 230,787,952 + 5,883,907 




JAMES A. GRAY ELECTED 
NEW PRESIDENT OF REYNOLDS 

AMKS A. (iRAY was elected president of R. J. 
Reynolds Tobacco Co. at the annual meeting 
ot directors in Winston-Salem, X. C., on April 
l(;th. lie succeeds S. Clay Williams, who was 
a<lvanced to the ])osition of vice-chairman of tlie board 
of directors. .Mr. Oray has been with the company 
since 1920. He is a native of Winston-Salem, a grad- 
uate of the local high school and of the University ot 
.North Carolina in tlic class of 1908. Following his 
^naduation, he became associat«'d with the Wachovia 
.National Hank, and later with the Wachovia Bank and 
Trust Co., where he was successively assistant trea.s- 
urer, treasurer aiul vice-])resident. 

He became connected with R. J. Reynolds Tolmcco 
Co. fourteen years ago as vice-presidi'iit, a position 
which he has held continuously since. He is forty- 
four years old. 

The officials of the company are: Bowman dray, 
chairman of the l»oard; W. X. Reynolds, chairman of 
the executive ccmimittee; J. A. Gray, pn'sident ; S. (May 
Williams, vice-chairman of the board; H. T. Kirk, vice- 
president ; R. H. Lasater, vice-president: M. K. Mot- 
singer, secretary; R. D. Shore, treasurer. 

May I, 1934 




JAMES A. GRAY 



Code of Fair Competition 



{Continued from Page 4) 



Section 10. r])()ii application of any employer, 
at any time a liiiilicr rate of exemption for slow workers 
than is established in Section 9 of this Article may be 
estal)lished by the Code Authority with the approval of 
the Administrator. At any time after September 1, 
1934. a Ingher or lower rate of exemption may be estab- 
lished for any particular emi)loyer by the Code Author- 
ity, with the ai^proval of the Administrator, after such 
notice and oi)i)ort unity to be heard as the Administra- 
tor may recpiire. 

Section 11. All jjiece rates shall be established so 
as to yield the minimum rates of pay i)rovidetl in this 
Article and no i)iece rate shall be reduced in order to 
increase the actual nund)er of slow workers employed 
bv anv nuuiufacturer. 

Section 12. Tlie wai'c.s of all employees now in 
excess of the minimum herein established shall be equi- 
tably readjusted. 

Section 13. Where male and female employees 
perform substantially the same duties or do substan- 
tially the same work, they shall receive the same rate 
of pay. 

ARTICLE V. 

General Labor Provisions. 

Section 1. Employees shall have the right to or- 
ganize and bargain collectively through representa- 
tives of their own choosing, and shall be free from the 
interference, restraint, or coercion of employers of 
labor, or their agents, in the designation of such repre- 
sentatives or in self -organization or in other concerted 
activities for the purpose of collective bargaining or 
other mutual aid or protection. 

Section 2. No employee and no one seeking em- 
ployment shall be required as a condition of employ- 
ment to join any company union or to refrain from 
joining, organizing or assisting a labor organization 
of his own choosing. 

Section 3. Employers shall conqjly with the 
maximum hours of labor, minimum rates of pay and 
other conditions of employment, approved or pre- 
scribed by the President. 

Section 4. No j)erson under the age of sixteen 
(16) years shall be emploved in the Wholesale Tobacco 
Trade. 

Section 5. Xo person under eighteen (IS) years 
of age shall work, or be permitted to work, at opera- 
tions or occupations hazardous in nature or detri- 
mental to health. The Code Authority shall submit 
to the Administrator within sixty (6t)) days after the 
efifective date of this Code, a list of such occupations 
for his approval. 

Section 6. Emi)loyers shall make payment of all 
wages in lawful currency or l)y negotiable checks, pay- 
able on demand. All contracts of employment shall 
l)rescribe payment of wages at least every two weeks 
and salaries at least as often as everv month. 

Section 7. Xo provision in this Code shall super- 
sede any State or Federal law which imposes on em- 
ployers more stringent requirements as to age of em- 
ployees, wages, hours of work, or as to safety, health, 
sanitary or general working conditions, or insurance 
or fire protection, than are imposed by this Code. 



Section 8. Employers shall not change the 
method of payment of employees' compensation or re- 
classify employees or duties of occupations performed 
by employees or engage in any other subterfuge so as 
lo defeat the purposes of the Act or the provisions 
of this Code. 

Section 9. X'^o employee paid at a rate in excess 
of the minimum shall be discharged and re-cmployeil 
at a lower rate of pay for the purpose of evading the 
provisions of this Code. 

Section lU. All employers shall keep posted com- 
plete copies of the provisions of this Code dealing with 
hours, wages and conditions of employment in conspic- 
uous places of easy and continuous access to employees. 

Section 11. Each member of the industry shall 
comply with such rules and regulations with regard to 
the posting of notices, bulletins and extracts of Code 
provisions as may be from time to time further issued 
by the Administrator. Such notices, bulletins and ex- 
tracts of Code provisions shall be written in Phiglish 
and such other language as may be in general use 
throughout the establishment. 

Section 12. Every employer shall make reason- 
able iJiovision for the safety and health of his em- 
ployees at the place and during the hours of their 
employment. 

Standards for safety and health shall be submitted 
by the Code Authority to the Administration within six 
months after the etfective date of this Code. 

Sf:cTioN 13. After the effective date of this Code, 
wages shall be exempt from fines and rebates ; and from 
charges and deductions, except charges and deductions 
for employees' contributions voluntarily made by em- 
ployees for benefit funds. Xo employer shall with- 
hold wages except upon service of legal process or 
other ])apers lawfully requiring such withholding. 

Deductions for other purposes not heretofore 
stated mav be made onlv when the contract is in writ- 
ing and is ke|)t on file by the employer for six months 
after the termination of the contract and which shall 
l)e kept open for the inspection of Government repre- 
sentatives. 

Section 14. At tin* expiration of nine (9) months 
after the effective date of this Code, the industrv shall 
petition the President or the Administrator to review 
the provisions of this Code relating to hours of labor 
and rates of pay. 

ARTICLE VI. 

Merchandising Plan. 

The Merchandising Plan set forth in Scheduh* I, 
annexed hereto, adopted for the Wholesale Tobacco 
Trade and the Ketail Tobacco Trade in their respective 
Codes of Fair Comi)etition and hereinafter for con- 
venient reference in part repeated, is hereby ac(U'pt<'d, 
adopted and approved; and all of the provisions of the 
said Merchandising I 'Ian set forth in said Schedule T 
and this Article VI in so far as they pur|)ort to regulate 
the conduct of members of the Cigar Manufacturing 
Industry are hereby made rules of fair practice and 
fair competition for all memlwrs of the Cigar Manu- 
facturing Industry. 

The provisions of said Schedule I and of this Ar- 
ticle VI mav be amended onlv bv amendment of this 

The Tobacco World 




Copyrlcbt, 1934, B. J. BcTnolds Tobacco Gompuv 



Watch out for the 
signs of jangled nerves 

You've noticed other people's nerv- 
ous habits — and wondered probably 
why such people didn't learn to con- 
trol themselves. 

But have you ever stopped to think 
that yoUy too, may have habits that are 
just as irritating to other people as 
those of the key juggler or coin jingler 
are to you ? 

And more important than that, 
those habits are a sign of jangled 
nerves. And jangled nerves are the sig- 
nal to stop and check up on yourself. 

Get enough sleep — fresh air — rec- 
reation—and watch your smoking. 

Remember, you can smoke as 
many Camels as you want. Their 
costlier tobaccos never jangle the 
nerves. 




FREE 

Game Book 







Shows 20 waya to 
test nerves — all il- 
lustrated. Instruc- 
tive and amusing! 
Try them on your 
friends— see if you 
have healthy nerves 
yourself. . . Mail order -blank below with 
fronts from 2 packs of Camels. Free book 
comes postpaid. 



CLIP AND MAIL TODAY I I 

R. J. Reynold* Tobacoo Company | 

Dept. U2-A. Winaton-Salem, N. C. | 

I enclose fronts from 2 packs of Camels. ■ 

Send me book of nerve testa postpaid. | 

J 

Nam* I 



(raiNT NAMB) 



^n€t. 



I 



City 



StaU 

OffM vxpirM D »e» ib w SI, ItM 




COSTLIER TOBACCOS 

Camels are made from finer, MORE EXPENSIVE 
TOBACCOS than any other popular brand of cigarettes! 



SMOKE AS MANY AS YOU WANT... 
THEY NEVER GET ON YOUR NERVES I 



«• ii. 1^ li.!! CAMEi CARAVAN with Casa Uma Orchestra, StoopnagU and Budd. Connie Bosweil, Every Tuesday and 
TUNE IN I Thursday at9PM,El T.-8 P. M , CS. T.~7 P. M., M.S. T.-6 P. M.. P.S. T. over W ABC -Columbia Network 



May /, jgs4 



Code and of tlio Codes for tho Wholosalo Tol)aeco 
Trade and the Retail Tobacco Trade, ])ut the Adnnnis- 
trator may of his own motion, or on recommendation 
of the Code Authority hereby esta])lished or of either 
of the Code Authorities established by the Codes re- 
spectively for the Wholesale Tobacco Trade and the 
Retail Tobacco Trade, and on such notice and hearin<>-, 
if any, as the Adminisli-ator may direct, stay th.e oper- 
ation of the provisions of said Schedule I and this Ar- 
t icle VI. 

Section 1. As to each of the cigars of his manu- 
facture, each ciiiar manufacturei- shall lecord with the 
Counsel the mininnnn sales ])rice at which such cii-ar is 
intended to be sold at retail (exclusive of any |L»-overn- 
mental tax or chari»e thereon recpiired to be i)aid by the 
jobber or retailer), which ]n-ice, hei-einafter referred 
to as "the retail pi'ice, " shall constitute the l)a^is for 
computin,i»- the discounts and terms for all dealers as 
hereinafter provided; and shall also record with \ho 
Authority the discounts and credit terms; to be allowed 
by him from the retail price in connection with iho sev- 
eral respective classes of transaction described in sub- 
divisions (a) to (d) inclusive of Section 2 of this Ar- 
ticle VI. The retail ])rice and, within the limits 
hereinafter prescribed, the discounts shall be subject 
to chansfe at the discretion of the maimfacturer, ])ro- 
vided the revised price of discounts, as the case may 
be, be recorded witli the Authority at least tive days be- 
fore the chanire becomes effective uidess a shorter time 
be required by a ci<j:ar manufacturer in order to meet a 
competitor's reduction of ])rice, which is not in viola- 
tion of this Code. The retail price shall be proniinently 
marked on each container of ciirars. 

Section 2. P^'rom the recorded retail ]n'ice, eadi 
ciirar manufacturer shall, as to each of his ])roducts, 
prrant discounts to be established by him in liis dis- 
cretion within the limits hereinafter in this Section 2 
prescribed, as follows: 

(a) In the ease of sales, if any, to retailers 
other than sales to chains of stores and other than 
drop shi])ment sales under subdivision (d) of this 
section 2, a discount of not more than 28%. 

(b) In the case of sales to accredited ciiifar 
jobbers, a discount, in addition to the discount 
which shall have been established by the numufac- 
turer under subdivision (a), of not more than 14%. 

(c) In the case of sales to cii^ar service job- 
bers, a discount, in addition to the discount whicli 
shall have been established l)y the manufacturer 
under subdivision (a), of not niore than 66 2/3% 
of the established discount to accredited iobbers. 

(d) In a territory where a ciuar nuuuifacturer 
has an accredited ciyar jobber, the ciijar manufac- 
turer may, in his discretion, make drop shipments 
to retailers or sub-jobbers, provided the accredited 
ci^ar jobber a,i»rees to or icnpiests such shi])ments; 
in a territory where the ci^rar mamifacturer has 
no accredited cisfar jobber, the ci*rar manufacturer 
may, in his discretion, make drop shipments, to 
retailers. Provided that in either case shipment^ 
shall be made only in quantities of not less than 
2,000 cip:ars in the case of Class A and Class B 
cio:ars, and not less than 1,000 ciufars in the case 
of Class C or hi^jfher classes. 

For such sales or drop shipments, there shall 

be established a discount for the drop shipment 

purchaser, in addition to the discount which shall 

have been established by the manufacturer under 

to 



Subdivision (a), of not more than 5%, and this 
discount shall be allowed by the manufacturer or 
jobber, whichever shall make the billing. 

The cii»ar manufactui'er nuiy in connection 
with each dro]) shi]>ment sale allow to the accred- 
ited ciiiar jobl)ei- who has recpiested or consented 
to such sale a service credit. Provided, that the 
total of the service ci'edit and the discount allowed 
to the drop shi])ment purchaser and the accredited 
jobber shall not exceed the 14% set forth mi Sub- 
division (b) above. 

(e) In the case of sales to chains of stores, 
discounts not exceeding- the discounts which the 
manufacturer shall have establislied for his sales 
to accredited cii^ar jobbers under Subdivision (b), 
provided, however, that each ci,ii:ar manufactu!-er 
may determine in his own discretion to which 
chains, if any he will make direct sales and, within 
the limits her<Mnai)ove ])rescribed, the amount of 
discounts on each such sale. 

On each transaction in any of the cate<^oi*ies (a) 
to (d) inclusive above described, the ciirar manufac- 
turer may allow a further discount of 2% for cash 
within his established credit terms. 

Xothintr herein contained shall ])revent any ciirar 
manufacturer from establishinir within the maximum 
percentajre limits hereinabove prescribed a dilTereiit 
schedule of discounts with resj)ect to each of the sev- 
eral brands, sizes, shapes or prices of his ])roducts, or 
a schedule of discounts different from that of anv other 
ci.uar manufacturer: but each ci^ar manufacturer shall 
a])i)ly his established system of discounts uniforndy as 
to each of the classes of transactions above enumerated 
in Subdivisions (a) to (d), inclusive, and within each 
of the said classes of transactions there shall in no case 
be any individual vai-iation or variations from the dis- 
count or discounts so established 1)y such ciyar manu- 
facturer. The service credits provided for in Sub- 
division (d) need not be uniform and may vary in each 
individual case. 

Section 3. No nuniufacturer shall sell cisrars at 
retail to consumers except in accordance with the ]n*o- 
visions of the approved Code of Fair Competition for 
the Retail Tobacco Trade, but the provisions of this 
merchandisins: plan shall not applv to anv cisrar manu 
facturer who sells exclusively and directly to the con- 
sumer. 

Section 4. No manufacturer shall offer or irive a 
free deal. The term **free deal'- as used in this para- 
irraph means the u:ift of cisrars or anything: of value or 
any special deal, discount or allowance conditioned 
u])on the purchase of a product. 

Section 5. All sales by manufacturers shall be 
evidenced bv itemized invoices sho\vin2: the retail ])rice 
and the discounts irranted therefrom. 

Section fi. I^pon the recommendation of the Code 
Authoritv established by this Code or the Code for the 
"Wliolesale Tobacco Trade or the Code for the Retail 
Tobacco Trade or upon application of any member of 
the Cicrar Manu fact urinir Industry or of the ^^^lolesale 
Tobacco Trade or of the Retail Tobacco Trade and the 
approval of such recommendation or application bv 
the Administrator, the Code Authorities established bv 
the said several Codes, shall, upon such notice and 
opportunity to be heard, if any, as the Administrator 
may require determine by joint action minimum dis 
counts to be prescribed in connection with sales of 
cigars by any member of the Industry, and such deter- 
mination shall be effective only upon the concurrence* 

Th4 Tobacco WorU 




May /, ig34 



U 



ther ap])roval of the Adiniiiislrator, such miniimini dis- 
eounts shall bo biiuliuii: ii])0]i all inoinbors of the 
Industry. 

Septiox 7. WluTovor auy of tho provisions of this 
Article VI provide for two or more discounts from the 
retail ])rice. such discounts shall ])e com])uted sep- 
arately and successively so that each succeeding: dis- 
count shall he com])ute(l u])on the balance of the retail 
price reniainini;- after the deduction of the next pre- 
cedinii" discount ))rovided for. 

Sk^tiox S. Xothinii: in this Article VI shall be 
construed to ])revent the free and ireneral distribution 
(tf articles connnonly used for advertising, except in so 
far as such distribution would constitute in effect an 
additional discount or reduction in price. 

ARTICLE VII. 
Trade Practices. 

Section 1. False Aflrrrfisivff. The makinir or 
causinu* or permittins: to be made or ])ublished of any 
false, untrue or deceptive statement bv way of adver- 
tisinc: or otherwise concernins: the ,u:rade, quality, quan- 
tity, substance, character, nature, oi-isfin, size or prep- 
aration of any product of the trade, havinir the ten- 
dency and capacity to mislead or deceive purchasers 
or prospective purchasers and the tendency injuriously 
to affect the business of competitors, is prohibited as 
an unfair method of competition. 

Sectiox 2. Drcppfire Brmidhq. The infriniro- 
ment of established trade-marks and the use of trade- 
marks or trade names which will result in deception of 
the public or enable dealers to perfect such deception is 
prohibited as an unfair method of competition. 

Section 3. Fahr BiU'wg. Xo member of the Tit- 
dustry shall knowinirly withhold from or insert in any 
quotation or invoice any statement that makes it inac- 
curate in any material particular. 

Section 4. hincnirnie LahrUinq. Xo member of 
the Industry shall brand or mark or pack anv ci.c:ar 
and/or ciurars in any hianner which is intended to or 
does deceive or mislead purchasers with respect to 
biands, parade, quality, quantity, oricrin, size, substance, 
cliaracter, nature, material content, or preparation of 
such ci^ar and ^or cisrars. 

Section 5. Inaccurate Ecfcrcticps fn Cnwpefi- 
/'»rs'. pfr. Xo member of the Industry shall publish ad- 
vertisins: which refers inaccuratelv in any material 
particular to any competitors or their croods, prices, 
values, credit terms, policies or services. 

Section 6. Threat. <t of Lawsuits. X^o member of 
the Industry shall publish or circulate unjustified or 
unwarranted threats of le,e:al proceedinsrs which tend to 
or have the effect of harassincr competitors or intimi- 
dating: their customers. Failure to prosecute in due 
course shall be evidence that any such threat is unwar- 
ranted or nniustified. 

Section 7. Brihinrf Emplnj/ees. Xo member of 
the Industry shall ijive, permit to be iciven, or directly 
or indirectly offer to prive, anything: of value for the 
purpose of influencinir or rewardins: the action of any 
employee, ajrent or representative of another in rela- 
tion to the business of the employer of such employee, 
the principal of such a,c:ent or the represented party, 
without the knowledsre of such employer, principal or 
party. This provision shall not be construed to pro- 

Section 6. If the Administrator shall at any time 
determine that any action of the Tode Authority or anv 
asrency thereof may be unfair or unjust or contrary to 
the public interest, the Administrator may require that 

/a 



hibit free and general distribution of articles com- 
monly used for advertising except so far as such ar- 
ticles are actually used for commercial bribery as here- 
inabove defined. 

Section 8. Coerciott. No member of the Industry 
shall require that a purchase of any tobacco products 
or other goods be a i)rere<iuisite to the i)urchase of any 
other tobacco products. 

Section 9. No member of the Industry shall dis- 
tribute any cigars or stogies, produced by* employees 
])aid at the wage rates prescribed in Article IV, Sec 
tion 5 of this Code, unless such cigars or stogies are 
])acked in containers clearly marked to indicate to the 
consumer that the cigars or stogies contained therein 
are intended to sell at retail, at not more than 2 for :. 
cents. 

ARTICLE VII. 

Orgranization, Powers and Duties of the Code 

Authority. Organization and Constitution. 

Section 1. There shall forthwith be constituted 
a Code Authority consisting of not more than twehn* 
members, to be selected as follows : 

Six members, three of whom shall represent ma 
chine cigar manufacturers and three of whom shall 
represent hand cigar manufacturers, selected bv the 
manufacturers who aie members of the Associated 
Cigar Manufacturers and Leaf Tobacco Dealers. 

Two members, one of whom shall represent ma- 
chine cigar manufacturers and one of wiiom sha'l 
represent hand cigar manufacturers, selected frnii 
non-members of the foregoing Association by the Ad- 
ministrator. 

One member, ap]>ointed by the Labor Advisory 
Board of the National Recovery Administration. 

Section 2. In addition to membership as above 
provided, there may be not more than three (3) mem- 
bers, to be appointed by the Administrator to serve 
without vote. 

Section 3. The Association and each trade or 
industrial association directly or indirectly partici- 
pating in the selection or activities of the Code Author- 
ity shall (1) impose no inequitable restrictions on mem- 
bership, and (2) submit to the Administrator true cop- 
ies of its articles of association, by-laws, regulations, 
and any amendments when made thereto, together w^ith 
such other information as to membership, organization, 
and activities as the Administrator may deem neces- 
sar\' to effectuate the purposes of the Act. 

Section 4. In order that the Code Authority shall 
at all times be truly representative of the Industry 
and in other respects comply with the provisions of the 
Act, the Administrator may prescribe such hearings 
as he may deem proper; and thereafter if he shall find 
that the Code Authority is not truly representative or 
does not in other respects comply with the provision** 
of the Act, may require an appropriate modification 
of the method of selection of the Code Authority. 

Section 5. Nothing contained in this Code shall 
constitute the members of the Code Authority partners 
for any purpose. Nor shall any member of the Code 
Authority be liable in any manner to anyone for any 
act of any other member, officer, agent, or employee of 
the Code Authority. Nor shall any member of the 
Code Authority exercising reasonable diligence in the 
conduct of his duties hereunder, be liable to anyone 
for any action or omission to act under this C^ode, ex- 
cept for his own wilful misfeasance or non-feasance, 
of all three Code Authorities and, subject to the fur- 

Th* Tobacco World 



CicarB are the 
Ust pleasurable 

,nd econ.»m»c«I 
form of smoking. 



e IB34 B. C. I. 



BAYUK BULLETIN 




WEDOOURMRT 



/OLIJME II. 



MAY 1, 1934 



NUMBER 7 




Iphulofax 

(The lietailer^s Friend) 

SAYS 

Mr. Jobber: In ana- 
lyzing results from your 
sales force, do you as- 
certain if trade is called 
upon too frequently or 
not often enough? Has 
each man enough ac- 
counts or too many ac- 
I counts? Is average sale per store too 
low or is there a tendency to load 
up trade? What is average credit 
Iturnover by each man? etc., etc. A 
good analysis often discovers the right 
or wronp status of a business or of 
any salesman out after business. 



The rainiest spot on the earth is the 
Iwaipo Valley in Hawaii, which truth 
hasn't the least iota to do with the 
fact that a salesman we know secured 
50 orders one blizzardy day as against 
another salesman getting 12 on a 
bright, sun-shiny day. Wonder wheth- 
er it was the weather! 



Speaking about sales records, how's 
this for high mark of orders taken in 
one week's work . . . maybe that word 

I "work" should have been "WORK" 
... 214 orders were taken by C. R. C. 

I during week ending April 7th. There's 
something to shoot at, boys! How 
about you F. L, B., and you, J. J. U. 

[beating it? ^ 

Don't tell me a real C. B. A. mem- 
ber can't help boost cigar sales . . . 
read this from Floyd N. out on the Pa- 
cific Coast: "Lots of movie owners 
give glassware, etc., to draw more 
women patrons. ... I went to a movie 
owner and said, 'Why don't you give 
I something to attract men?' Result — 
I he gave u CIGAR to each male patron 
on his free gift night." Nice work, 
brother C. B. A.! 



"I won first prize in last month's 
sales contest," writes B. L. C, "and 
when I analyzed the whole thing I 
I realized that 1 didn't work any harder 
to win the prize than I should have 
worked to win my own self-respect." 
Commendable thought, B. L. C. 



THE ANSWER TO 
''I CAN BUY 'EM CHEAPER' 

Salesman A. W. Goudey Spikes Bromide for Keeps 



If you should make the finest 
mousetrap in the world and start 
out to peddle it around to the re- 
tail trade, it wouldn't be long 
before you ran up against that 
moss-grown argument — "Why 
should I sell your mousetraps ? I 
can buy a cheaper line and make 
more money." 

The first salesman who ever 
sold cigars met that argument 
the first day he started on his 
rounds. And every other sales- 
man has been hearing it regu- 
larly ever since. There's nothing 
novel about it, but as a first qual- 
ity, chilled steel, hard-to-crack 
piece of sales-resistance, it's a 
lulu. The darned thing is so 
logical. 

However, A. W. Goudey, New 
York cigar salesman, tells how 
he flattened out the "buy 'em 
cheaper" comeback with a sales 
argument that was still more 
logical. Let him tell it. 
• • • 

I was calling on the proprietor 
of an up-state drug store. And 
he said "no" as plainly as a man 
could say it. 

"Look here, Goudey. I can buy 
lots of cigars cheaper than yours, 
that go pretty well with my 
trade. I'd be seven kinds of a 
dam fool to cheat myself out of 
that extra profit." 

"That's right, Mr. X," I re- 
plied. "I see your point. By the 
way, how many of my brand 
could you sell in a month?" 
Well, it's a popular smoke — 



I'll admit that. Let's say I could 
sell about 500 a month. But I 
would make less profit. I might 
not sell as many of these other 
brands but I make — " 

"Pardon the interruption, Mr. 
X," I said. "If you can sell 500 
of my cigars in a month — and 
your bill is not due for 30 days 
— you're making a good profit 
without any investment at all. 
It's just as if you had these 
cigars on consignment. With 
your permission I'd like to leave 
this little display on your case — 
and send you 500 cigars. Let's 
see what the quality of this 
cigar, plus all the advertising 
we're putting behind it, will do 
for you." 

"Right," said X. "I'll try it." 
And he did. Before his bill was 
due, he'd sold out and had to or- 
der more. Now when I call to 
see him I just say "Good morn- 



ing!" He's always ready with 



AESOP WOULD HAVE 
LIKED THIS ONE 

Yes, this actually happened. 
Jones leaves his office accompanied 
by his friend Brown. 

JONES: Gee, I've got to get some 
cigars. 

BROWN : There's a cigar store, right 
over there. 

JONES: Not for mine. The baby 
that runs that shop knows 
too much. 

BROWN: What d'vou mean, he knows 
too mucn. 

JONES : He knows better than I do 
what cigar I ought to 
smoke. He's always trying 
to switch me to some brand 
I never heard of. 

BROWN: Makes a larger profit on it 
probably. 

JONES: I dunno. Anyway, I'm 
trading at a place where 
the motto is "You pays 
your money and you takes 
your choice." 

MORAL: It's sometimes easier to 
talk yourself out of a sale 
than into one. 



an order. 



BAYUK BRANDS BUILD BUSINESS 

Bayuk Philadelphia Perfecto 

(BAYUK -PHILLIES") 

Havana Ribbon 
Mapacuba 

Charles Thomson 
Prince Hamlet 



«o 



If for any reason you miss a cus- 
tomer Oil your regular visit and it's 
just impossible to make a call-back, do 
you 'phone him at the very earliest 

opportunity? 

There is more nutritive value in 
codfish than there is in gooseberries 
and there is more economical pleasure 
»n a ciKar than in any other form of 
smoking. — o— 

"Dear Phil — Will you do all you can 
to kill the report that I have joined the 
^avy. Outside of trying to get a job 
the only thing I want to join is the 
C. B. A. 

(Signed) Alex Smart." 



Wben are you joining? 

CBA 

CIGAR BOOSTERS' ASSOCIATION 




a^ui^ 



D.ai. 



*j»;^tiat*d wiih BAYUK CIGARS, INC.. PWfa- 
"■W^— MoAot^ «/ Jim* eig€uv •imem i»97 



REVISING THE 

DICTIONARY 

In the bright lexicon of Harry 
Clews, a St. Louis cigar salesman, 
the word "poster" is now spelled 
"booster." 

Before Mr. Clews leaves a dealer's 
store it is his custom to produce a 
poster with a brief sales spiel to the 
following effect: "Let me put this 
little booster on your window. It will 
be a boost for your business, my busi- 
ness and the cigar business." 

Mr. Clews reports a record number 
of posters installed by this simple 
metnod of impressing the dealer with 
the undeniable fact that a good 
poster, prominently displayed, is a 
hard working, silent salesman who 
asks no wages — and who never goes 
out for lundb. 




WEEP-AND THE WORLD WEEPS WITH YOU 



L.M.T., cigar salesman, tells one 

that you wouldn't believe if you hadn't 

heard really intelligent salesmen pull 

tricks equally as dumb. 
♦ ♦ ♦ 

I was having lunch in a restaurant 
some time ago (relates L.M.T.), when 
in came one of my competitors (we'll 
call him Smithers) who sells a line of 
good cigars. 

"How's business?" he asked the 
proprietor. He got the inevitable 
answer: "Rotten. How's yours?" 

"Lousey," replied friend Smithers. 
With that he and the restaurant man 
fell to weeping on each other's shoul- 
ders. This talk about business getting 
better was the bunk, — there wasn't 
any business to get better and collec- 
tions were awful. Oh, they had a sim- 



ply marvelous time. After about five 
minutes of this. Smithers went away, 
sobbing quietly into his crying towel. 

As though I had not overheard a 
word of their conversation, I stepped 
up to the desk. "Say," I remarked 
casually. "Did you see in the papers 
the coal miners got $3,200,000 last 
pay. And with this cold weather, it 
looks like a big pay for them again 
this time. Car loadings have picked 
up, too. I can certainly feel the ef- 
fects in my business. Yesterday was 
the best day I've had in months.' 

Before I left I had an order for 
exactly $62.80. At least half of it be- 
longed by rights to Smithers. But he 
had no kick coming. He'd had a mar- 
velous time unburdening his sorrows 
to a sympathetic listener. 



I 



such action be suspended to ailt'ord an oi)i)ort unity for 
investigation of the merits of such action and further 
consideration by such ('o(k' Authority or agency pend- 
ing linal action which shall not be effective unless the 
Administrator ai)proves or unk'ss he shall fail to dis- 
api)rove after thirty days' notice to him of intention 
to i)roceed with such action in its original or modified 
form. 

Powers and Duties. 

Se('TI(»n 7. Subjeet to such rules and reguhitions 
as may be issued by the Administrator, the Code Au- 
thority shall have the following powers and duties, in 
addition to those authorized bv other provisions of this 
( 'ode : 

(a) To insure the execution of the provisions 
of this C'oile and to provide for the compliance of 
the Industry with the provisions of the Act. 

(b) To adopt by-laws mid rules and regula- 
tions for its i)rocetlure. 

(c) To obtain from members of the Industry 
such infornuition and reports as are required for 
the administration of the Code. In addition to 
information required to be submitted to the Code 
Authority, meml)ers of the industry subject to 
this Code shall furnish such statistical infornmtion 
as the Administrator may deem necessary for tlie 
puriK)ses recited in Section 3 (a) of the Act to 
such P\'deral and State agencies as he may desig. 
nate; provided that nothing in this Code shall re- 
lieve any member of the Industry of any existing 
obligations to furnish reports to any Government 
agency. No individual rei»ort shall be disclosed 
to any other member of the Industry or any other 
l)arty except to such other (Jovernmental agencies 
as may be directed by the Administrator. 

(d) To use such trade associations and other 
agencies as it deems i)roiK'r for tlie carrying out of 
any of its activities provided for herein, provided 
that nothing herein shall relieve the Code Author- 
ity of its duties or responsibilities under this Code 
and that such traije Associations and agencies 
shall at all times be subject to and comply with the 
provisions hereof. 

(e) To nuike reconunendations to tlie Ad- 
ministrator for the cooiilination of the administra- 
tion of Ibis {\h\{^ with such other codes, it any, as 
may be related to or atTect members of the In- 
dustry. 

(f) (1) It being found necessary to support 
the Administration of this Code, in order to effec- 
tuate the policy of the Act and to nuiintain the 
the standards of fair competition established here- 
under, tin* (*ode Authoiity is authorized: 

(a) To incui- such reasonable obligations 
as are necessary and jiroper for the foregoing 
jjurposes ami to meet such obligations out of 

• funds which shall l)e held in trust for the jmr- 
poses of the Code and raised as In-reinafter 
provided ; 

(b) To submit to the Administrator for his 
approval, subject to such notice and opportunity 
to be heard as he nuiy deem necessary 

1. An itemized bmlget of its estimated ex- 
penses for the foregoing ])ur])oses, and 

2. An equitable ])asis upon which the 
funds necessaiy to support such ])udget shall 
be contributed by all members of the Indus- 
try; 



(c) After such budget and basis of contri- 
bution have been approved by the Administra- 
tor, to determine and collect equitable contribu- 
tions as above set forth, and to that end, if neces- 
sary, to institute legal proceedings therefor in 
its own name. 

(2) Each member of the Industry shall be 
liable for his or its equitable contribution to the 
expenses of the maintenance of the Code Authority 
as hereinabove provided. Only members of the 
Industry complying with the Code and making 
such contribution shall be entitled to participate 
in the selection of the members of the Code Au- 
thority or to receive the benefits of its voluntary 
activities or to make use of any NRA insignia. 

(g) To cooperate with the Administrator in 
regulating the use of any NRA insignia solely by 
those members of the Industry who are complying 
with this Code. 

(h) To recommend to the Administrator any 
action or measures deemed advisable, including 
further fair trade practice provisions to govern 
members of the Industry in their relation with 
each other or with other industries; measures for 
industrial planning, and stabilization of employ- 
ment; and including modifications of this Code 
which shall become effective as part hereof upon 
approval by the Administrator after such nulice 
and hearing as he may specify. 

(i) To api)oint a Trade Practice Committee 
which shall meet with the Trade Practice Commit- 
tees appointed under such other codes as may be 
related to the Industry for the purpose of formu- 
lating fair trade practices to govern tlie relation- 
ships between employers under this Code and such 
other codes to the end that such fair trade piac- 
tices may be proposed to the Administrator u 
amendments to this Code and such other codes. 

(j) To provide appropriate facilities for ar- 
bitration, and sul)ject to the approval of the Ad- 
ministrator, to prescribe rules of procedure and 
rules to effect compliance with awards and deter- 
mination. 

Section 8. Anv member of the Industrv mav sub- 
mit data tending to j)rove that such member is placed 
at a competitive disadvantage with or is subject to dif- 
ferent economic conditions to those of otiier membei- 
of the Industry; and the Code Authority may, after 
investigation recommend to the Administrator that 
change l)e made in the Labor Provisions of this Code, 
and u|)oii approval by the Administrator, after such 
notice and hearing as he may sj)ecify, such new pro 
visions shall become effective for that member of the 
Industry. 

Section !). Whenevei" any <piestion may arise 
under this Code as to the construction and meaning ot 
any portion thereof, the Code Authority may issue 
such interpretations as mav be necessarv to elfectuatr 
the operation of and compliance with the j)olicy of the 
Act, subject at all times to the approval of the Adminis 
trator and such interpretations approved by the Ad 
ministrator shall become operative as a part of thi^ 
( 'ode. 

Section 10. No luovision of this Code siiall deny 
to anv member of the Industrv or to anv paitv in anv 
jiroceeding the right to ap})eal to the Administrator nor 
prevent, at any time, direct appeal to him from any 
determination of the Code Authoritv. The Co<le Au- 
thoriiy may, if it chooses, invoke tlie j)roeedure pio- 
vided for in this section. 

Th4 Tobacco WorU 



ARTICLE IX. 

Modification. 

Section 1. This Code and all the ])rovisions 
liiereof are expressly made subject to the right of the 
President, in accordance with the provisions of sub- 
section (b) of Section 10 of the Act, from time to time 
lo cancel or modify any order, approval, license, rule 
or regulation issued under said Act. 

Section 2. This Code, except as to provisions re- 
(juired by the Act, may be modified on the basis of ex- 
perience or changes in circumstances, such modifica- 
tions to be based upon application to the Administrator 
and such notice and hearing as he shall specify and 
to become effective on approval of the Administrator. 

ARTICLE X. 

Monopolies, Etc. 

Xo ])rovision of this Code shall be ai)plied as to 
permit monopolies or monopolistic practice, or to elim- 
inate, oppress, or discriminate against small enter- 
prises. 

ARTICLE XI. 

The provisions of this Code shall not apply to the 
territory of Puerto Rico, but its provisions shall apply 
to the marketing of Puerto Rican cigars, by the manu- 
facturers thereof, in the United States. 

ARTICLE XII. 

Effective Date. 

This Code shall become effective on the date speci- 
fied by the President in \m order of approval. 

SCHEDULE L 

Merchandising Plan. 



Sales by Cigar Manufacturers. 

Sfxtion 1. As to each of the cigars of his manu- 
facture, each cigar manufacturer shall record with the 
(V)uncil the minimum sales price at which such prod- 
uct is intended to be sold at retail (exclusive of any 
uovernmental tax or charge thereon required to be paid 
bv the jobber or retailer), which price, hereinafter 
referred to as **the retail price" shall constitute the 
basis for computing the discounts and terms for all 
dealers as hereinafter provided ; and shall also record 
with the Council the discounts and credit terms to be 
allowed by him from the retail price in connection with 
the several respective classes of transaction described 
in subdivisions (a) to (d) inclusive of Section 2 of this 
Division A. The retail price and, within the limits here- 
inafter prescribed, the discounts shall be subject to 
change at the discretion of the manufacturer, provided 
the revised price or discounts as the case may be, be 
recorded with the Council at least five days before the 
change becomes effective unless a shorter time be re- 
quired bv a cigar manufacturer in order to meet a 
competitor's reduction of price which is not in viola- 
tion of this Code. The retail price shall be prominently 
marked on each container of cigars. 

Section 2. From the recorded retail i)rice, each 
cigar manufacturer shall as to each of his products, 
grant discounts to be established by him in his discre- 
tion within the limits hereinafter in this Section 2 pre- 
scribed, as follows: 




mm^mmmmimmm^^limmm 



ILLIAN RUSSELL 

2 

for 

V 5c 




CIGARS 




CIGA 



P. LORILLARD GO'S 
Quality 

2 *««• 5^ 

Cigars 

Meeting the public's demand 
for quality cigars 
moderately priced 



NEW 

CURRENCY 

CIGARS 





2 

for 

5c 



Our Other Popular 2 for 5<? Cigars 
JAMES G. BLAINE • • POSTMASTER 
LA FRAOSA • SARONA • WAR EAGLE 




TOBACCO TRADE ORGANIZATIONS 

TOBACCO MERCHANTS ASSOCIATION 
OF UNITED STATES 

JESSE A. BLOCH. Wheeling. VV. Va v^ ^ S'^IJ^Ili 

JULIUS LICHTENSTTEIN. New York. N. Y ;.... • .Vice-President 

WILLIAM BEST. New York. N. Y Chairman Executive Committee 

MAJ. GEORGE W. HILL. New York. N. Y X'"p'^!!H^n 

GEORGE H. HUMMELL. New York. N. Y vl^^p'" den 

M. H. SHELTON. Washington. DC Vce' Dresden! 

WILLIAM T. REED. Richmond. Va Vc^ President 

HARVEY L. HIRST. Philadelphia. Pa ^ t'!™^^ 

ASA LEMLEIN. New York. N. Y •; ■•jV, •" nfrtrlnr 

CHARLES DUSHKIND. New York. N. Y Counsel and Managing Director 

Headquarters. 341 Madison Ave., New \ ork Lity 

RETAIL TOBACCO DEALERS OF AMERICA, INC. 

WILLIAM A. ROLLINGS WORTH. 233 Broadway New York. N. Y. ....President 

CLIFFORD N. DAWSON, Buffalo. N. Y Executive Vice-President 

JAMES C. THOMPSON, Chicago, 111 Ireasurer 

ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS 

JOHN H. DUYS. New York City pi^t' vi^ePres'S 

illLTON RANCK. Lancaster, Pa -FTst v "pr^^ Sent 

I). EMIL KLEIN. New York City ^'^creyarTTJeasurS 

LEE SAMUELS, New York City Secretary -Ireasurer 

NATIONAL BOARD OF TOBACCO SALESMEN'S 

ASSOCIATIONS 

ABE BROWN. 180 Grumman Ave., Newark, N. J ;." Vr-'o^'-jf^! 

Albert FREEMAN. New York. N. Y -.Fust V.c^-Pr"ident 

VrVEN M. MOSS, Trenton. N. J Second Vtce-President 

A. STERNBERG. Newark. N. J Secretary 

RETAIL CIGAR STORE ASSOCIATION OF PHILADELPHIA 

S5il MAg\I?^1 N.MervineS^VP^^^^^^^ 

THE NATIONAL ASSOCIATIONS OF TOBACCO 
DISTRIBUTORS, INC. 

E. ASBURY DAVIS. Baltimore. Md. -■■■•■■■■■ V'v Scrlta^y 

JOSEPH KOLODNY. 200 Fifth Ave New York. N. \ f^llsurer 

GEO. B. SCRAMBLING. Cleveland, Ohio ireasurer 

UNITED STATES TOBACCO DISTRIBUTORS ASSOCIATION 

DDr»\x;w President 

hTrMAN H YAFFE, m Fox BuiidingV Phiiadeiphia.' Pa.' ::...■ Secretary 

ts 



May /, 1934 



(a) In the case of sales, if any to retailers 
other tlian saks to chains of stores and other than 
clro]) shipment sak\s nnder snhdivision (d) of this 
Section 2, a discount of not more than 28%. 

(b) In the case of sales to accredited ciji^ar 
jobbers, a discount, in addition to the discount 
which siiall have been established by tlie numufae- 
turer under sululi vision (a), of not more than 14%. 

(c) In the case of sak's to ci,i»ar service job- 
bers, a discounl, in aiklition to the discount which 
shall have been established by the manufacturer 
under subdivision (a), of not more than (>() 2/3% 
of llie estal)lishcd tliscount to accredited jobbers. 

(d) In a territory where a cii»ar manufacturer 
has an accredited ci^ar jobber, the ci<»ar manu- 
facturer may, in his discretion, make droj) ship- 
ments to retailers or suhjobbers. provided the 
accredited cii;ar jobbei- agrees to or recjuests such 
shii)ments; in a territory where the ci<»ar manu- 
facturer has no accredited cinar jobber, the ci«i:ar 
nuHiufactui* r may, in his discietion, make drop 
sliipments to retailers. Provided that in either 
case shi]>ments shall be made only in (piantities of 
not less than 2,000 cigars in the case of Class A 
and Class H ciiiars, and not less than 1,000 cigars 
in the case of Class C or hiuher classes. 

For such sales or dro]) shii)ments, there shall 
be established a discount for the di-o)) shi])n:ent 
purchaser, in acklition to the discount which sliall 
have been established by the mamifacturer under 
Subdivision (a), of not more than .")%, and this 
discount shall be allowed by the mamifacturer or 
jobbei-, whichever shall make the billiui*'. 

The ci,i»ar manufacturer may in connection 
with each droj) shijiment sale allow to the ac- 
credited ciuar jobber who has rcMpiested or con- 
sented to such sale a service credit. Provided, 
that the total of the service credit and the discount 
allowed to the dro]) shijiment purchaser and the 
accredited jo])])er shall iHit exceed the 14% set 
foi'th in Subdivision (b) above. 

(e) In the case of sales to chains of stores, 
discounts not exceedint;: the discounts which the 
manufacturer shall have established for his sales 
to accredited ciyar jobbers under Subdivision (b), 
jirovided, however, that each ciuar manufacturer 
may determine in his own discretion to which 
chains, if any, he will make direct sales and, within 
the limits hereinabove jirescribed, the amount oi 
discounts on each such sale. 

On each transaction in any of the categories (a) 
to (d), inclusive, above descrilied, the ciirar manufac- 
turer may allow a further discount of 2% for cash 
within his established credit terms. 

Xothiui* herein contained shall |)revent any ci<»:ar 
manufacturer fiom establishinu: witliin the maximum 
l)ercenta,U(' limits hereinaliove prescribed a different 
schedule of dis<'ouiits with respect to each of the sev- 
eral brands, sizes, shapes or prices of his ])roducts, 
or a scheduh' of discounts ditTerent from that of any 
other ci^ar manufaclurtM": but each cii^ar manufac- 
turer shall aii])ly his <'stal)iished syst<'m of discounts 
uniformly as to each of the classes of transactions 
above enumerated in Subdivisions (a) to (d), inclu- 
sive, and within each of the said classes of transactions 
there sliall in no case be any individual variation or 
variations from the <liscount or discounts so estab- 
lished by such cigar manufacturer. The service credits 

to 



provided for in Subdivision (d) need not be uniform 
and vary in each individual case. 

Section .*). No manufacturer shall sell cigars at re- 
tail to consumers except in accordance with the i)rovi- 
sions of this merchandising ))lan relating to sales by re- 
tailers; but the provisions of this merchandising plan 
shall not iippW to any cigar manufacturer who sells 
exclusively and directly to the consumer. 

Section 4. Xo manufacturer shall otTer or give a 
free deal. The term ''free deal" as used in this para- 
graph means the gift of cigars or anything of value or 
any special deal, discount or allowance conditioned 
upon the purchase of a jiroduct. 

Section 5. All sales by manufacturers shall be 
evidenced by itemized invoices showing the retail price 
and the discounts granted therefrom. 

B. 
Sales hfi Jftbhcrs anfl Siib-Johhrrs. 

Section 1. Each jobber shall record with the 
Council the discounts and credit tei'ins (not exceeding 
the discounts which such jobber shall have received 
from the manufacturer) to be allowed bv the iobbei- 
irom the retail \)vwv in connection with all resales of 
cigars which in his discretion he may make to sub- 
jobbers. Such discounts shall be subject to change at 
the discretion of the jobber, provided that the revised 
discounts be recorded with the Council at least three 
days before the change becomes etTective unless a 
shorter time be recpiired in order to meet a competi- 
tor's reduction of price and the discounts so recorded 
shall so long as etTective apply to all such resales In- 
the jobber to sub-jobbers and there shall in no case be 
any individual vaiiation or variations from the dis- 
count or discounts so established. 

Section 2.-- Hach jobber and each suh-johher shall 
record with the Council the discounts and credit terms 
(not exceeding the discounts from the retail price which 
such jobber or sub-jobber shall have received from the 
manufacturer or jobber, as the case may be) to b*- 
allowed upon all resales of cigars to retailers. Such 
discounts shall be subject to change at the discretion 
of the jobber or sub-joI)ber, provided the revised dis- 
counts l)e recorded with the Council at least three days 
before the change becomes etTective unless a shorter 
tim(» be recpiired in order to meet a competitor's reduc- 
tion of ])rice; and the discounts so recorded shall, s(» 
long as effective, apj)ly to all such resales to retailers 
and there shall in no case be any individual variation or 
variations from the discount or discounts so estab- 
lished. 

Section .3. Each resale by a jo}»})er or sub-jobber 
under this merchandising i)lan shall be evidence<l l>y an 
itemized invoice. 

Section 4. Xothing in this Division R contained 
shall affect or modify the provisions alcove set forth in 
Division A in relation to dro]) shipment sales. 

Section ."), X"o jobber or sub-jobber shall sell ci 
gars directly to tin* consumer exce|)t thi'ough an estab- 
lished retail department and in compliance with the 
provisions of this meichandising plan in relation to 
retail dealers. 

C. 
Sah's htf Urfaili'is. 

Section 1. In the case of all cigars purchased by 
retailers from cigar manufacturers, jobbers oi- sub- 
jol)bers in connection with which a retail price shall 
have ])een recorded by the manufacturer as herein- 
above |)rovided, the retailer shall sell such ciirars at rr*- 
tail at not less than th(> retail price so recorded, ])ro- 

Th* Tobacco World 




NBC 

RED NETWORK 

9t30-10 p. M., E. D. T. 

New York WEAF 

Hartford WTIC 

Providence WJAR 

Worcester WTAG 

PoriUnd WCSH 

Philadelphia . . WFIWLIT 

Schenectady WGY 

Buffalo WBEN 

Piltsbur«h WCAE 

•>30-9F.M., E.S.T. 

Baltimore WFBR 

Washington WRC 

Cleveland WTAM 

Detroit WWJ 

Cincinnati WSAl 

•t30-9 P.M., C.D.T. 

Chicago WMAQ 

7s30-tP.M., C.S.T. 

St. Louis KSD 

Des Moines . . WOC-WHO 

Omaha WOW 

Kansas City WDAF 



\ ided, however, that (1 ) in the case of the sale at retail 
of multiples of not less than ten units (except in the 
case of cigars selling for less than five cents (.V) each) 
a discount may be allowed of not more than y/c from 
the retail i)rice, and (-) in the case of sales at retail 
of boxes of 2.") cigars or more a discount of not more 
than 8% from the retail price may be allowed unless 
the cigar manufacturer shall record with the Council 
and mark a box ])ric(» thereon involving a discount of 
less than 8%, in which case the marked box price shall 
be observed as a minimum, and C^) the retailer may 
give not more than one ])ad of matches for each unit 
sold, or live pads ])er box of twenty-tive cigars or ten 
pads ])er box of lifty cigars sold. In the case of any 
retailer granting a cash discount upon all i»urchases 
made, anv sales of cigars shall be excluded in comput- 
ing the cash discount to be allowed, or the amount of 
cash discount shall be included in the price of the mer- 
( iumdise sold in addition to the minimum prices herein 
provided. 

Section 2. r])on any sale to a consumer, situated 
at the time of such sale 'in a State imposing a tax on 
tobacco products or the sah' thereof (other than a tax 
pavable bv the manufacturer) the amount of such tax, 
if not ]m"id by the consumer, shall l)e added t() the 
minimum i>rice herein ])rovided, whether the seller 
>hall be located within or without such State. 

Section .T Notwithstanding the i)rovisions of this 
merchandisinu plan, any tobacco retailer may sell at 
h'ss than the prices therein prescribed merchandise 
sold as bona fide clearance or Ixma fide discontinued 
lines or merchandise or imj>erfect or actually damaged 
merchandise or merchandise sold upon the complete 
liiial licpiidation of any business or merchandise do- 
nated for charitable puri>oses or to unemployment re- 
lief agencies, provided that all such merchandise shall 
be advertised, marked and sold as such and that a strip 
label shall be place<l across the inside lid label of box 
uoods to be dispose<l of, stating the reason the said 
merchandise is being s(»ld bel(»w the prescribed prices 
therefor, ami provided further, that such merchandise 
shall be <lisposed of pursuant to any regulation as to 
I he mannei- of such disi)osal as shall be issued by the 
Code Authority sulgect to the approval of the Ad- 
ministrator. 

Se(tion 4. Except as in this merchandising plan 
nllierwise expressly provi(kMl, wherever under any of 
ihe provisi<ms n\' "this merchandising plan any cigar 
is required to be sold at retail at a minimum price, 
such minimum retail price shall not be reduced directly 

May r, tgs4 



or indirectlv or bv anv device or subterfuge such as 
tlie giving of any trading or merchandise coupons, 
prizes or premiums or any other thing of value or 
discount, rebate, refund, commission, credits or allow- 
ances whether in the form of money or otherwise; nor 
shall any retailer offer or extend si)ecial service or 
j)iivilei»e to any customer whicli is not available to all 
customers. 

D. 

M in i ni u m 1) isco u iits. 
Fpon the recommendation of the Code Authority 
established by the Code for the Cigar Manufacturing 
Industry or the Code for the Wholesale Tobacco Trade 
or the ('ode for the Retail Tobacco Trade or upon ap- 
plication of any member of the Cigar Manufacturing 
Industry or of the Wholesale Tobacco Trade or of the 
Retail tobacco Trade and the ap])roval of such recoin- 
mendation or application by the Administrator the 
Code Authorities establislied by the said several codes, 
shall, upon such notice and opi)ortunity to be heard, 
if any, as the Administrator may refpiire deterinine by 
joint' action minimum disc(»unts to be prescribed in 
connection with sales of cigars by any member of said 
Industry or Trades and such determination shall be 
effective only upon the concurrence of all three Code 
Authorities tind, subject to the further ai)])roval of the 
Administrator, such minimum discounts shall be bind- 
ing upon all such members. 

E. 
ProvLsifnis Applicable i<> All Sales of Cigars. 
Section 1. Wherever any of the i)rovisions of this 
merchandising plan provide for two or more discounts 
from the retail price, such discounts shall be com])uted 
separately and successively so that each succeeding 
discount shall be computed upon the balance of the 
retail juice remaining after the deduction of the next 
])receding discount provided for. 

Section 2. Any increase in the retail price shall 
be api)licable as at the effective date of such increase 
to all merchandise thereafter sold bv wholesale dis- 
tributors or retailers, but wholesale distributors may, 
notwithstanding any reduction of the retail price, tlis- 
pose of existing stocks on the basis of the retail i)rice 
|)revailing when such stocks were ac^piired. 

Section 3. Nothing in this merchandising plan 
shall hv construed to prevent the free and general (lis- 
tribution of articles commonly used for advertising 
]>uri)oses, except in so far as such distribution would 
constitute, in efTect, an additional discount or reduc- 
tion in price. 



Eitablithed 1886 



"BEST OF THE BEST" 




^^^^^^1^ A. SANTAELLA & CO. 

Office, 1181 Broadway, Naw York City 

FACTORIES: Tampa and Ktp West, Florida 



OUR HIGH-GRADE NON-EVAPORATING 

CIGAR FLAVORS 

Make tobacco meUow and amooth In character 
and Impart a most palatable flavor 

FUYORS FOR SMOKING and CHEWING TOBACCO 

Write for List of Flavors for Special Brands 
ftKTUN. AROMATIZE!. AOX FLAVOIS. TASTE SWEETENEBS 

FRIES 6l BRO.. 92 Reade Street, New York 



iv«(,'^»A^v?/]Lv»>«iv»yjtv»A'y«/:'AS^y«/ji^ 



■'.'•9j:'^9J'V^*j:'X9/:'X9j:;\9j:* 



Classified Column 

The rate foi this column it three cents (3c.) a word, with 
a minimum charge ol seventy-five cents (75c ) payable 
utrictly in advance. 



^tr:0ri^!>f^l?^t!t7'vur:f>f^t'^^ 



rs<ttfS<ti9Crs<ttrs<v^rg\"rg<^rii\- yg^- 



POSITION WANTED 



CIGAR SALESMAN COVERING EASTERN PENNSYLVA- 
NIA and Local Territory desires connection. Large following. 
Address Box No. 580. "The Tobacco World." 

Newspaper and magazine advertising executive, thoroughly 
experienced, formerly with local newspapers and agencies, and also 
advertising manager. Position with firm desiring an advertising man, 
salesman or assistant to manager. Knows marketing, merchandis- 
ing and distribution. Salary not as important as opportunity to 
demonstrate actual worth and ability. References the highest. 
Address, F. H. Riordan, 5915 Webster Street, Philadelphia, Pa. 



CIGAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON 

Automatic Machines, wants a position. Also instructs beginners. 
Address Box No. 558, "The Tobacco World." 



FOR RENT 



OFFICE AND FLOORS FOR CIGAR MANUFACTURING OR 
STORAGE — No parking restrictions; good location; low rent; 
freight elevator and loading platform. Will divide. Metals Coating 
Company of America, 495 North Third Street. Philadelphia. 



HAVANA CIGARS 



BEER WITHOUT CIGARS, IS LIKE KISSING WITHOUT 
LOVE — Adopt as your slogan, "Kiss your beer, but love your ci- 
gars." Specially those Havana blended, "Good to the last Ptiff," 
manufactured by A. Ramirez & Co.. Post Office Box 1168. Tampa, 
Fla. Write them for particulars today. 



Tobacco Merchants' Association 
Re^stration Bureau, Sew^york" cj-I^ 

Schedule of Rates for Trade-Mark Services 
Effective April 1, 1916. 



rte^istratioii. (see Note A), 


$5.00 


Search, (see Note B), 


100 


Transfer, 


2.00 


DnpHcntp r«rtific»ate. 


2.00 



Note A— An •Ilowance of $2 will be made to members of tbe Tobacco Mer- 
chants' Association on each registration. 

Note B— If a report on a search of a title necessiUtes the reporting of more 
than ten (10) titles, but less than twenty-one (21). an additional charge of One 
Dollar ($1.00) will be made. If it necessitates the reporting of more than twenty 
(20) titles, but less than thirty-one (31), an additional charge of Two Dollars 
($2.00) will be made and so an additional charge of One Dollar ($1.00) will be 
made for every ten (10) additional titles necessarily reported. 



NEW REGISTRATIONS 

BARNACLE BILL:— 46,315. For all tobacco products. Stadkr 
Cigar Co., Keokuk, lovk^a. April 7, 1934. 

RESIL: — 46,416. For all tobacco products. La Floridana Cigarette 
Co.. Tampa. Fla. March 7, 1934. 

FOUR BAGGER:— 46,317. For all tobacco products. Harvev's 
Syracuse, N. Y. March 27, 1934. 

FINFAY: — 46,318. For all tobacco products. Harvey's, Syracuse 
N. Y, March 27, 1934. 



TRANSEFERRED REGISTRATION 

PENGUIN:— 45,975 (T. M. A.). For all tobacco products. Regis- 
tered December 28, 1931. by Christian Peper Tobacco Co.. St. 
Louis, Mo. Transferred to Brown & Williamson Tobacco Corp., 
Louisville, Ky., April 10, 1934. 



RENEWAL REGISTRATIONS 

LA PATRONA: — 46,310. For cigars, cigarettes and tobacco. Con- 
solidated Litho. Corp., Brooklyn, N. Y., March 30, 1934. (Orig- 
inally registered April 18. 1911, by American Litho. Co., New York, 
X. Y., predecessors of the Consolidated Litho. Corp.) 

GRANDMONT:— 46,311. For all tobacco products. Consolidated 
Litho. Corp., Brooklyn, N. Y., March 28, 1934. (Originally regis- 
tered August 20, 1909. and October 18, 1910, by American Litho. 
Co., New York, N. Y., predecessors of the (Consolidated Litho. 
Corp.) 

ENCANTO:— 46,312. I'or all tobacco products. Consolidated Litho. 
Corp.. Brooklyn, N. Y., March 28. 1934. (Originallv registered on 
January 8. 1909. by American Litho. Co.. New York, N. Y.. prede- 
cessors of the Consolidated Litho. Corp.) 

BLENMORE: — 46,313. For all tobacco products. Consolidated 
Litho. Corp., Brooklyn, N. Y., March 28, 1934. (Originally regis- 
tered on January 0, 1916, by .American Litho. Co.. New York, N. Y. 
predecessors of the Consolidated Litho. Corp.) 

GLENMORE: — 46,314. For all tobacco products. Consolidated 
Litho. Corp., Brooklyn, N. Y.. March 28, 1934. (Originally regis- 
tered on February 14, 1920. by American Litho. Co.. New York. 
N. Y., predecessors of the Consolidated Litho. Corp.) 




FORD PRICK ON CHESTERFIELD 

OKI) FRICK, who was signed as announcer for 
the Chesterfield series starring Rosa Ponselle, 
Nino Martini, Grete Stueckgold and Andre 
Kostelanetz' Orchestra and Chorus, has re- 
covered from the throat infection which prevented him 
from assuming his duties when the program started. 
He took over the announcing assignment Monday, 
April 23d, and will be heard every Monday, Wednes- 
day and Saturday from 9 to 9:30 P. M., E. S. T. (E. D. 
S.T. after April 29th). 

Frick was stricken with a sore throat shortly be- 
f()re the series began. It developed into a serious con- 
dition necessitating a surgical operation. In the mean 
time, Hugh Conrad has been announcing the programs. 




COMMON SENSE 



= 



The importance of attractive and dependable containers for 
fine cigars is recognized by the progressive cigar manufacturer. 

Generally the brands that are increasing their goodwill in this 
present analytical market are packed in the new improved 
AUTOKRAFT cigar boxes. 

Cigar Manufacturers who have not investigated the value of 
the merits and economies of the splendid and inviting package 
may obtain complete details promptly by addressing the 
AUTOKRAFT BOX CORPORATION. 



Phi la.. Pa. 
Hanover, Pa. 
Cincinnati, Ohio 



AUTOKRAFT BOX CORPORATION cMZgd'ni. 

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A NatiorvWiAc Service Wheeling, W. Va. 




UBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA.. PA. 



After all 
nothing satisfies likc^ 
a good cigar 



WOODEN BOXES 

Are the Only Natural Humidor for Cigars. 



Pack your cigars in wooden boxes and preserve 
their delicate aroma, mellowness and flavor 
right up to the time they are passed over the 
counter to the customer. 

Discriminating cigar smokers prefer to select 
their favorite brand from a wooden box— and it's 
good business to cater to the dealer and con- 
sumer by packing your cigars in wooden boxes. 



WHEN BUYING 

Rtmcmbcr th 

THE BEST 

AEC 

WOODEN 



UYINC CICARSX 

at Rcgjrdlets of Pncc I 

lEST CIGARS I 

DEN BOXES ^ 



THE TOBACCO WORLD 



Vol. 54 



MAY 15. 1934 



No. 10 



The TOBACCO WORLD has signed the President's agreement and 
is operating under NRA Code, gladly and wholeheartedly co-operating to 
the fullest extent in the Administration's effort to promote industrial re- 
covery. 



NOP] there was a rabbit who . . . beat a 
turtle in a race. And wiiij^led his whiskers 
while bra^^iii^ about it. Imagine his embar- 
rassment when somebody asked him, *But 
wasn't that a turtle you beat!' Is he any sillier than 
those who crow about beating the crii)pled figures of 
last year! After all, isn't it how fast the rabbit goes 
that counts--not what the rabbit beats! If he's run- 
ning slower than the power in his legs equips him to 
run, he isn't running fast enough — no ivatter what 





he's beating." 



OW'S that for a devastating retort to the mis- 
guided executives in the cigar business who 
have been *' wiggling their whiskers while 
bragging" about the way this year's figures 
are bounding ahead of last year's! What an unan- 
swei-able counterblast to the words of courage which 
this business paper caught from the lips of Frank Will 
and published as an editorial, thus earning the com- 
n.iendation of our sciuare-shooting contemporary, 
Tobacco Leaf. It is so pat an answer that it must 
have been written, sez you, by one of the "clear think- 
ing" cynics in the cigar business, whose name is legion 
— you know, the men who go out of their way to un- 
caVth some depressing conclusion from the most hope- 
ful situation occurring in their industry. You're right, 
it does sound like a cigar man's talk, but it isn't. There 
are wet blankets in other lines, loo, and we have taken 
the ])aragra])h at the head of this column from the 
Amos Parrish Magazine, as quoted in the current issue 
of Adrertishif] <{' SeUivg. In case you are unfamiliar 
with the Amos Par rish Magazine, please be i)roperly 
awed by the news that it is issued by an organization 
whose business is the inqirovement of other people's 
business. 

Nothing would please us more than to regale you 
with an exposure of the sui)erficialities of this '* clever" 
paragrai)h as it would undoubtedly l)e done by Pinch- 
iiitting Editor Will, but that gentleman is somewhere 
out on the circuit **crowing about beating the crippled 
figures of last year," so we'll have to do our best as a 
substitute rebutter. Here goes: 



8 A parable, the analogy between a rabbit beat- 
ing a turtle and this year's business figures 
beating last year's, is a swell example of cock- 
eved vision *and distorted thinking. If you 
must have a rabbit, Amos, then it might be all right 
for you to conqiare his slow going over a muddy track 




last year with a zippier speed over this year's faster 
track. Or you might even stick to the turtle, compar- 
ing the inq)rovement in its crawling, lumbering gait 
for the two years. In anv case, vou must be satisfied 
with one animal and conq)are its speeds, for it is the 
performance of one industry, oi* one business, which 
is involved. Your analogy would apply only to the 
comparison of a fast-moving industry, like automo- 
biles, to a slow-moving one, like, say, suspension-bridge 
building. It has no relation whatever to the com- 
l)arative performauces, over a two-year period, of one 
business. 



O, ANSWERING your question, Amos, the 
whiskers-wiggling, bragging rabbit who beat 
the turtle in a race is a lot sillier than those 
who crow about beating the crippled figures of 
last year. Representing the cigar industry as the 
rabbit (we nuty be slow, but not (|uite as hnnbersome 
as a turtle), the fact is that his speed was not any- 
thing to boast about last year. Taking courage from 
a faster s|)eed this year might be in the nature of 
clutching at straws, were it not for the further fact 
that last year's rate of sj)eed was not a solitary drop 
from normal. It was slower than '32, w^hich was 
slower than '31, which, in turn, was slower than '30, 
and so on. In other words, our rabbit was gradually 
growing tortoise-like in his movements. Is it silly, 
my friend, to feel encouraged if our rabbit stops his 
slowing-up process and starts to regain his old-time 





speed f 



FTER all, isn't it how fast the rabbit goes that 
counts — not what the rabbit beats!" Of 
course it is, Amos, but you know that the most 
satisfactory way to determine the rabbit's 
^]»eed is to conq)are this year's records with last. As 
a matter of infornuition, we'd like to know your method 
of determining how fast the rabbit is going. I'ertainly 
you don't tell us when you say, "If he's running slower 
than the power in his legs etpiips him to run, he isn't 
running fast enough — no matter what he's beating." 
We have no patience with those who are content to 
lean on the alibi of "conditions" to explain a poor 
business which might more properly be traceable to 
laziness, incom])etence, lack of initiative, lack of re- 
sourcefulness, or any number of other causes, but we 
;ne not blind to the circumstance, as Amos Parrish 
seems to be, that the speed of a horse, or a rabbit, or 
a business, is affected by the condition of the track 
and the weather and other influences. We .just don't 
believe that High Quest would have set a new Preak- 
ness record at Pimlico last Saturday if the track had 
been heavy and the sky overcast, no matter how fast 
"the poww in his legs equips him to run." 



The TOBACCO WORLD (established 1881) is published by Tobacco World Corporation; Hobart B. Hankins, President and Treasurer; 
Gerald B HanSns Secretary. Office, 236 Chestnut Street. Philadelphia, Pa. Issued on the 1st and 15th of each month. Subscriptions, avail- 
TbYe onl?to th^rengaged ta ^ industry. $2.00 a year, 20 cents a copy; fordgn, $3.50 a year. Entered as second-class mail matter, 

December 22, 1909, at the Post Office, Philadelphia, Pa., under the Act of March 3, 1879. 



i 



I 




F THE puii)ose of the parable was merely to 
criticize us hopeful souls for jubilatiu^ over 
an improveniciit wliich should be accredited, 
not to any stron.i'er elTort on the part of the 
business racer, but entirely to a faster business track, 
then Amos Parrish is still wron,i>headed in his ar- 
raij»mnent. The taster the track becomes, the faster 
will be the individual contenders, and, inevitably, the 
faster the average for the entire field. Doesn't that 
seem like a more sensible way to interpret the com- 
parative figures, Amos! 




X TIMS connection, it is sij2:nificant that the 
owners of the cigar business stable from 
which emciged the one-and-one-half-year-old 
tilly ])ace setter over last year's muddy track 
(Bayuk Phillies, out of Bayuk Philadel})hia Perfecto, 
by Philadelphia Hand-made) are loudest in their ac- 
claim of this year's faster track. All their promotion 
last year had for its object the speeding u]) of the 
cigar business track for all, on the logical principle 
ihat the easier going would help their own entry to 
tiavel faster. 



You've Met Miss Sellers. Remember? 




TOP in at one of the Marbern chain stores for 
some cigars (any old kind), and it's a two-to- 
one bet that vou'll come out with a Bavuk 
product unless you are determined that you 
want some other brand before you go in." Thus spoke 
a visitor to the office this morning. He was so im- 
pressed by his own experience that we felt obliged 
to see this super-salesmanship working and to find out, 
if possible, the "how come" of it. That exphiins our 
ante-luncheon call at the Marbern store just around 
the corner, at 50 South Second Street, one of the out- 
standing stores of the chain. 

As readers of this publication know, this Marbern 
branch is presided over by that dynamic personality, 
Miss Sellers, as store manager, and with a very able 
and i)leasant assistant The store is a model for neat- 
ness and the completeness of its varied stock. If you 
are fortunate enough to arrive at a time when Miss 
Sellers is not busy with another customer, try asking 
her for something you would hardly expect her to have 
in stock. The chances are that she will surprise you 
by having it right where she can reach it without any 
unnecessary steps, or if. such a thing should happen 
that it is not in her complete stock you will be the ex- 
ception if you walk out without something **just as 
good", for Miss Sellers' long experience behiiid the 



retail counter has given her a knowledge of various 
brands and products that makes her competent to sug- 
gest the right article for your requirements. 

We do not hesitate to state that if there were more 
sales people of the calibre of Miss Sellers, there would 
not be such a cry of poor business among the retail 
trade. 

But what has all this to do with the object of our 
visit to the store, the discovery of the reason for the 
selling of Bayuk brands there in gratifying volume! 
Well, according to Miss Sellers, it is all* the result of 
an address to the Marbern sales force last week by 
E. R. Sharrock, local sales nuinager for Bayuk Cigars, 
Inc., at Marbern headquarters, 103 Church Street. His 
tidk had to do with present-(lay requirements of be- 
hind-the-counter salesman. Mr. Sharrock 's long ex- 
perience in the retail field (pialifies him as an authority 
worth listening to and heeding, and his genial person- 
ality enables him to gain the undivided attention of 
his listeners so that his message becomes unusuallv 
effective. 

If you want to know why business men from all 
sections of the city j)atronize the store at 50 South 
Second Street, there you have it. We congratulate the 
executives of the Marbern stores for having had the 
foresiglit to obtain the services of a store manager of 
such a high caUbre, 




10,000 Puerto Rican Sign-up Contracts 

J. B. Gil)bs, of the Tobacco Section, has been in 
charge of the sign-up, aided ]>y five district supervisors 
and by agricultural agents. After the contracts have 



HK SKiX-UI* of contracts in the tobacco adjust- 
ment i)rogram for Puerto Kico, the first such 
plan to be put into effect for an insular posses- 
sion or territory of the United States, has been 
completed with a total of 10,000 contracts offered by 
producers, it was announced todav bv the Tobacco Sec- 
tion of the Agricultural Adjustment Administration. 

The sign-up has placed under contract practically 
all Puerto Rican producers who are growing tobacco 
this season. This includes approximately 90 per cent. 
of those who raised tobacco during the years 1929-1934, 
the base period under the contract. 

The contracts offered to Puerto Rican producers, 
by which curtailment of the crop being harvested and 
the acreage to be planted next season is sought, require 
that growers leave unharvested all of the second and 
third crops on their acreage this season. For this re- 
duction growers will receive payment at the rate of 
$10 per cuerda (1.01 acres) where the crop is harvested 
by "priming'' or picking individual leaves, or payments 
of $15 per cuerda where the crop is harvested by stalk 
cutting. 



been examined and accepted for the Secretary of Agri 
culture by these officials, they will be sent to Washing 
ton for final api)roval and pavment, probablv about 
July 1st. 

Puerto Rican growers aie also asked to reduce 
acreage planted for the 19.^4-19.*?.') cro|), with a choice of 
curtailing acreage by 40 }>ei- cent., with two crops to Ik? 
harvested; or by 2.') per cent., with oidy one <'rop to be 
harvested. Rental ]»ayments of $.'{0 per cuerda on land 
taken out of pro<luction, and an a<ljustment jiayment of 
30 per cent, of the market value of the crop, will be 
made. 

Approximately $l,7r)0,(WK) will !)e distributcMl to 
producers participating in the 19.TM9.'U and 1934-193.') 
program. The contract contains aii option by which 
reduction may l>e required in 193r)-1936, if held neces- 
sary by the Secretary of Agriculture. 

Tk€ Tobacco World 



Flue-cured Growers May Increase 

Acreage or Production 

Unfavorable Weather Conditions Prompt New Ruling 




RODUC^ERS partici])ating in the 1934 adjust- 
ment jirogram for flue-cured tobacco are of- 
fered an opi)ortunity to increase acreage or 
production of tobacco above the amount allot- 
ted under the terms of the contract, according to an 
administrative ruling just announced by the Agricul- 
tural Adjustment Administration. Under the ruling, 
issued because of unfavorable weather conditions in 
some sections of the flue-cured tobacco belt, producers 
may increase either their acreage or production, or 
])oth, to as much as 80 per cent, of their base, instead 
of the 70 per cent, allotted under the contract. 

Producers who take advantage of this ruling will 
receive smaller payments than those who grow and 
market only 70 per cent, of their base. 

Where acreage exceeds 70 per cent, of the base, 
one-third of the amount of rental y)ayments of $17.50 
per acre would be deducted from the adjustment pay- 
ments. The making of rental payments will be com- 
pleted and all deductions will be made from the adjust- 
ment payments due after the 1934 crop is sold. Where 
the amount of tobacco sold exceeds 70 per cent, of the 
base tobacco ])roduction, the rate of adjustment pay- 
ments will be varied in accordance with the amount of 
tobacco sold. 

In explaining the ruling, J. B. Hutson, chief of the 
Tobacco Section, said: '*We are giving growers this 
opportunity to grow and market a slightly larger quan- 
tity of flue-cured tobacco because we believe that under 
the conditions which have recently developed it will 
result in more total income than would be obtained from 
a smaller crop. Domestic consumption of flue-cured to- 
))acco has increased during the past few months, and 
the exi)ort movement has been larger, particularly dur- 
ing the past two months, than during the corresponding 
])eriod of either of the two preceding years. Although 
most of the increased exports have gone to increase 
foreign stocks rather than into consum})tion, it appears 
that the decline in the consumption of flue-cured types 
noted during the past two or three years has been 
h(»cked, at least in some foreign countries. 

"With favorable weather conditions, it would have 



been possible to have obtained the production needed 
from the acreage originally contemplated. However, 
with unfavorable weather conditions we believe a 
slightly larger acreage to be advisable. 

"At the time the contract was drawn it was not, 
of course, possible to anticipate exact cro]) conditions 
during the season. However, the ruling demonstrates 
the flexibility of the adjustment program in adapting 
itself to changes which may occur, and will enable pro- 
ducers to adjust their acreage and production to fit 
conditions as they have developed. No doubt many 
growers will find it to their advantage to continue with 
the reduction originally planned and receive the larger 
rental and adjustment payments. Perhaps as many, or 
more, will find it to their advantage to grow and market 
80 per cent, of their base production, and accept the 
reduced payments. 

"If half of the growers market 80 per cent, of their 
base production and the remainder market 70 per cent, 
of their base production, the quantity sold by growers 
signing contracts would be approximately 500 million 
pounds. This would leave us with a crop this year 
about as much below the level of consumption as the 
crop of last year exceeded that level, which is the situ- 
ation conteinplated in our production adjustment pro- 



gram. 



(• 



"linfavoraWe weather conditions also ])revail in 
some sections in which other types of tobacco are 
grown. However, no change is contemplated at this 
time in the allotments to growers of other types. The 
supplv situation is less unsatisfactory in the case of 
most other tvpes than is true of flue-cured tobacco. The 
excess supply, that is, the stocks in addition to the 
normal stocks, in the case of flue-cured types is suffi- 
cient to last about three months. In the case of the 
other types, the excess supply is sufficient to last from 
six months to one vear and six months, the latter being 
true in the case of Burlev and some of the cigar leaf 
tvpes In the case of these types with the larger excess 
supplies, a crop materially below the quantity allotted 
under contracts would result in no shortage of to- 
))acco." 



Co-operating to Protect Manila Prices 




A. BOND, Manila Tobacco Agent in this coun- 
try, and his co-agent, David F. Morris, who 
is now engaged in an extensive tour of the 
Midwest, are operating under cabled instruc- 
tions from Juan Posadas, (Collector of Internal Rev- 
enue, to report every instance which may come to their 
attention of price-cutting below the limits recently an- 
nounced bv (Jovernor General Frank \Iurphy. Gov- 
«rnor General Murphy has announced his intention of 
•*cracking tlown" on manufacturers who ship inferior 
grades of Manila cigars to the United States to un- 
dersell corresponding grades of cigars made by Amer- 
ican manufacturers. 

May IS, I9S4 



In backing up the Governor General, Collector 
Posadas issued a circular announcing that he would 
refuse to ])ass for shipment to the States cigars to be 
sold for two for five cents which were priced at less 
than $16.50 in States which have cigar taxes, and 
$17.00 in tax-free States. The only exception concerns 
damaged cigars already here. 

The two-fold reason given by Collector Posadas 
was as follows: First, he is anxious to protect the good 
name of Manila cigars in the United States ; second, 
he wants to guard against disturbing stable market 
conditions here at a time when the re-establishment 
of business prosperity is the country's first thought. 



1 



■1 



I 

I 




"IT WON'T BE LONG NOW" 

By William A. HoUings worth 

T IS hard to soo liow anything' could arise at 
this late day to })ivveiit final approval of the 
retail tobacco Code within the next few days. 
The Code Committee of Retail Tobacco Dealers 
of America has V)een busy in Washinj2:ton this week 
conferring with officials of the National Recovery Ad- 
ministration for the purpose of ironing out a few minor 
differences as to the wording or exact content of cer- 
tain paragraphs. This work is now practically com- 
pleted. The truth is that every factor or problem con- 
nected with the retail tobacco business has been thor- 
oughly covered by N. R. A. and the Code Connnittee. 
Tins Code, renien'i]>er, has been under practically con- 
stant consideration l)y X. R. A. for more than ten 
months. Few Codes liave been held so long for 
analysis and scrutiny; and ours is now one of the few 
larger industries without a (^ode. 

^ During the past ten months the retail tobacco Code 
Connnittee has gone through the public hearings on 
the Code. It has sat in numberless conferences with 
individual officials and with boards and committees of 
N. R. A. On its own initiative and in resi)()nse to 
requests from X. R. A. it has assembled, analyzed and 
submitted a vast fund of facts and statistics on all con- 
ceivable phases of our industry. X. R. A., we feel sure, 
has before it material that tells it everything that is 
known about the retail tobacco business. 

X. R. A. officials have ex])ressed themselves not 
onlv as appreciative of the Code ConnnitteeV attitude 
and work, but also as satisfied with the provisions of 

the Code. 

When vou consider, therefore, that General John- 
son has repeatedly stated his desire to have every 
industry of any imi)ortance under a Code at the earliest 
possible date, there is no reason on earth, so far as we 
can see, for anybody with the country's best interests 
at heart to expect or to fear further delay in the ado]v 
tion of the retail tobaccrt Code. 

That is why I say it would be difficult, ])ractically 
impossible to imagine how anything could come up at 
this stage to postpone the Generars proni]»t a])i)roval 
of the document and the President's signing it and 
making if a ])art of the law of the land. 




MINIMUM PRICES FOR SHADE TOBACCO 

SCHKOrLK of minimum sale ]>rices for Con- 
necticut vallev shade-grown tobacco which is 
expected to give growers returns of approxi- 
mately *H) per cent, of fair exchange value, or 
an increase of 25 pt-r cent, over ])rice8 of last season, 
lias been ai)pr()ve(l ()> Secretary of Agriculture Henry 
A. Wallace. The prico schedule will operate in con- 
nection with a marketing agreement and license under 
which handlers of this type of cigar tobacco are now 
operating. 

The minimum ])rice schedule was formulated and 
submitted to the Secretary by the control committee 
in charge <>f supervision of the marketing agreement 
and license. The present fair exchange value for this 
type of tobacco is 87.78 cents per pound. The farm 
price for tliis type (hiring the 1932-33 season was fifty- 
nine cents per pound, or twenty-eight cents below 
present fair excliaige vahie. The price .schedule now 
in effect represents an increase of approximately 25 
per cent, over prevailing prices of last season. The 



increase is expected to bring farm prices for this shade 
tobacco to approximately 90 per cent, of fair exchange 
value. 

The minimum prices apply to sales by licensees 
who are themselves growers of the greater part of the 
t()l)acco. ^lost of the remaining growers have arrange- 
ments whereby their tobacco is handled for them un- 
der joint account or on a commission basis by the 
licensees. Thus, the prices received by licensees con- 
stitute in almost every instance direct returns to 



Musings of a Cigar Store Indian 



growers. 



W J K PEPPING FOR G H P 




^HE 



K Will-Jenks-Kynett Pep squadron is en- 
gaged in ])reaching thegospel of optimism over 
tlie immediate future of the cigar business 
generally and the outlook for El Producto and 
La Azora cigars specifically, to enthusiastic meetings 
of salesmen operating within a sleeper-jump of G. II. P. 
headquarters in Philadelphia. Last Thursday night 
(the 10th) they sj)ellbound the men of Daniel Lough- 
ran & Co., Inc., in Washington, at a meeting attended 
also by the salesmen from the company's branch in 
Baltimore. On Saturday morning, the siiles force of 
the Scranton Tobacco Co., got a shot of the now famous 
Dr. Will's Anti-Blues Serum. Pittsburgh and Buffalo 
are booked for this week. At each of these general 
sales meetings, addresses are made by Frank P. Will, 
executive vice-president of G. H. P.; D. A. Jenks, as- 
sistant general sales manager; and H. H. Kynett, of 
the Aitkin-Kynett advertising agency, who is respon- 
sible for the company's "Kynettic" salesmanship in 
print. 

Incidentally, the comi)any's business in April was 
extraordinarily good, thank you. And that ai)plies to 
factory shijunents and retail sales as well, G. H. P. 
having a <|uick reaction on the latter through the com- 
j)an\ 's nine branches, giving a cross-section of con- 
sumer business from Maine to the Twin Cities. 




CHECKS TO MARYLAND GROWERS 

HE first of the rental payments to growers who 
have signed contracts to reduce their 19.*}4 
acreage and production of Maryland tobacco 
by 25 per cent., were disl)ursed on May 4, it 
was announced by the tobacco section of the Agri- 
cultural Adjustment Administration. The initial block 
of checks, representing a total of $18,390 to producers, 
covered 379 contracts which offered 919 acres of re- 
duction. 

The adjustment contract for Maryland tobacco was 
designed principally to reduce production of the lower 
grades of this ty]K» of tobacco, which make up the 
greatest portion of the existing surj^lu^- A total of 
564 contracts have been signed by growers. 

Two payments are to be distribut<»d to Maryland 
tobacco growers. The first, or rental payment, now 
being distributed, is at the rat-e of $20 per acre for each 
acre retired from tobacco production under tlie con- 
tract. After proof of compliance to the provisions of 
the contract have been presented by producers, an ad- 
justment payment, at the rate of not less than 25 per 
cent, of the calculated value of the tobacco which might 
have been grown on the rented acres, is to be distrib- 
uted. 

Tkg Tttbocco World 



By Chief "Young-Man-Smoke-Cigars" 





MUCH interest has been evinced in our 
transcription of passages from John L. Mor- 
rison's **The Passing of the Wooden Indian" 
in September, 1928, Scribner's that we are 
encouraged to add the following from the same source: 
"Mr. R. Chapins Comoy, 72 Roseberry Avenue, Lon- 
don, E. C. 1, tells me there are many finely preserved 
figures of Highlanders still to be seen in England. 
;Niost present-day Londoners will remember the old 
Highland figure which stood outside the shoj) door of 
W. Lawrence at the top end of Tottenham Court Road. 
During the celebration of the South African War this 
magnificent figure was seized by the University Col- 
lege hospital students and carried shoulder high 
around the West End, and it was only with great diffi- 
cultv and by the assistance of the i)olice that Mr. 
Lawrence was able to secure it. When the premises 
were demolished, about ten years ago, the figure moved 
to the doorway of Messrs. Catesby's, l^td., thereby los- 
ing caste, being now *in linoleum' and not the tradi- 
tional snuff and tobacco. 

CS3 ft] C?3 

XOTHER figure is a giant with fixed and stony 
expression which has for many years met the 
gaze of i)assers-by at Frederick Wright's, 112 
High Street, Ch'eltenham, while an equally 
characteristic one adorns an old tobacco business in 
Whitefriars Hall, near to the street bearing that odd 
name, *The Land of Green Ginger.' The only Sir 
Walter Raleigh the writer knows of is a splendid 
specimen at the doorway of the Keystone Tobacco 
Company at the Holborn end of Kingsway, W. C, 
London. A fine *black boy' sign more than one hun- 
dred years old can be seen at the sho]i of Messrs. Wil- 
son & Companv, 21 Barbican, E. C. However, the 
sign of this house has always been the ancient three 
tobacco-rolls. The roll sign is freciuently to be met 
with. 

CS3 CJ3 CjJ 

HE wooden Indian reached his greatest vogue 
in the late fifties, the sixties, seventies and 
eighties. Bulls' head or steer-horns proclaimed 
the butcher's shop, menacing bears furriers' 
showrooms, and no saddlery shop sidewalk was with- 
out its piebald or calico horse. There were watches, 
boots and shocking stockinged legs, the clothier s 
dummv bedizened by a twelve-dollar non-shnnkable 
suit. A gigantic hat frequently made known the hat- 
ter's place of business. Pedestrians had no right ot 
way on sidewalks; his path was disputed by vegetable 
offerings, displays and show figures, while sides ot 
beef hung outside, ghastly and naked, whereon flies 
held conventions, enormously attended, with only a 
small proportion of the delegates falling victim to the 
flypaper offerings. It was the era of the fly-brush, but 
not the fly swatter, as crystallized in the epochal classic 
of the grieved customer who bought a wedge ot ap- 

May IS, I9S4 





l)arently black currant pie, only to find it custard. The 
Chicago, San Francisco and Baltimore fiies took nearly 
all the wooden Indians of those cities to the happy 
hunting ground. Then came on regulations as to side- 
walk obstructions, and this, coupled with the advent 
of the chain stores, was the greatest blow the wooden 
Poor Lo ever received, and drove him from his ])ictur- 
esque duties. 

^ ^ ^ 



HE latter days of the vanishing tribe have 
brought varied fortunes. Some, as that 
Bleecker Street giant— more than nine feet — 
have found good homes on country and sub- 
urban estates, standing majestic amid the rhododen- 
drons, and a few watch in city back lawns. Juvenile 
Wild West attacking forces have done some to death 
and others to disfigurement for life. College humor 
is responsible for not a few absent faces; as are 'Sweet 
Adeline' homeward-bound groups. Marble-hearted 
owners have occasionally sold their braves for money. 
A striking, six-foot-eight metal figure, made by Henry 
Dibblee, Chicago, faces the Black Hawk trail at Rock- 
ford, III. The noble Indian with shield and spear at 
Bush & Trexler's, Philadelphia, was, in 1914, sent to 
the hai)i)v hunting ground through fire, after being 
cruelly hacked to i)ieces by his owner. The Bucks 
County, Pennsvlvania, Historical Society houses 
twentv. 

ft 

Ct] Ct3 Ct3 

ESTIXG ])eacefully in the museum of the 
Western Reserve Historical Society, Cleve- 
land, is an Indian that once disappeared from 
view and knowledge of all men. Years later 
workmen emploved in the excavation for the Union 
Trust Companv building uncovered a hand and, 
shocked by the* ghastly sight, stampeded. The fore- 
man and Volunteers completed the exhumation and 
brought to life a wooden Indian, who proved to be 
none'other than the old Erie Street warrior of (Jregor 
Albert. 

Cj3 Cj3 £t3 

HE lone Indian of Chicago, 'Big Chief Me- 
Smoke-Em,' is a splendid specimen of \v(»(Hlen 
Indian sculpture. He has background, liaving 
been modeled from an Iroquois chief. Henry 
Hand, son of the original owner, declares his father 
told him the Indian was made by one ot the world s 
cn-eatest carvers, and that thousands of real Indians 
have testified, with looks, nods, grunts, words and pur- 
chases of tobacco, to Me-Smoke-Enrs resemblance to 
the chief who served as the artiste model. Descend- 
ants of these Indians, when tliey come to Chicago, 
never fail to pav the big chief a visit. Me-Smoke-Em 






went through the great Chicago fire, rescued from time 
to time hy his owner, and lie now liokls a i-ifle that 
was used by one of the pale-faced sharpshooters 
against the savage Indians in the massacre at old Fort 
Dearborn. 

CJ3 CjJ Cjl 

AXHATTAN'S sole chief— Phillips B. Thomp- 
son's — was saved from the police by a recessed 
property line, 4r)th Street just east of Fifth 
Avenue. It was recently moved to Madison 
Avenue. He's an outlander from Great Neck. Annie 
Barrett's Pocahontas, forty years on Water Street, is 
a native of Cherrv Street. 



Cj3 CS3 CjJ 

HIEF SEMLOH, America's farthest-west, and 
California's oldest, Indian, sentinels the to- 
bacco shop of S. E. Holmes, San Francisco. 
He is a Manhattan and a Forty-niner, setting 
out via Cape Horn for Maryville, stage center and out- 
fitting point of the gold rush, where he arrived in 1850. 
After sixty-seven years he left the gold fields for the 
bright lights of Powell Street.'' 





FIRST CHECKS FOR BURLEY GROWERS 

HE writing of checks, to cover rental jiayments 
of $20 per acre of reduction to growlers who 
have signed 1934 Burley tobacco adjustment 
contracts, has started and an initial block of 
947 checks, representing $24,334, is in the process of 
disbursement, it was announced by the tobacco section 
of the Agricultural Adjustment Administration. These 
first checks which initiate the distribution of ai)proxi- 
mately $15,000,000 in rental and adjustment ])aymenls 
to 95,000 growers of Burley tobacco who have con- 
tracted to reduce 1934 acreage and production from 
one-third to one-half of their base, go to participating 
growers in Smith County, Tenn. The contracts for this 
county were delivered to the Agricultural Adjustment 
Administration on May 2, by X. B. Morgan, county 
agent. 

To date, a total of 4276 Burley tobacco contracts, 
calling for disbursement of $178,132 have been ad- 
ministratively approved and are now in the process of 
final audit. These contracts, which offer 9900 acres of 
reduction, are distributed by states, with rental pay- 
ments involved, as follows: Kentucky, 1960 contracts, 
$121,150; Tennessee, 1136 contracts, $28,620; West 
Virginia, 1144 contracts, $27,980; and Virginia, 36 con- 
tracts, $382. 

Thus far 14,453 Burley tobac<*o contracts have been 
received in Washington and recorded by the contract 
records section. As producers may choose to reduce 
acreage and production by either one-third or one-half, 
with several options as to base acreage, the amount of 
reduction pledged cannot be accurately determined 
until all of the contracts have been tabulated. 




Charles Bobrow is promoting Bold in Western 
Pennsvlvanina. 



SCRAP AGREEMENT TENTATIVELY APPROVED 

MARKETINCi agreement under which four to- 
bacco companies would agree to purchase at 
least an aggregate amount of 18,500,000 
pounds of stemming grades of cigar-leaf to- 
])acco at prices approximately 100 per cent, higher 
than prevailed last season, have been tentatively ap- 
l)roved by Secretary of Agriculture Henry A. Wallace. 
The agreement is now being submitted to Bloch Broth- 
ers Tobacco Company, Liggett and Myers Tobacco 
Company, P. Lorillard Company, and Scotten-Dillon 
Company, the contracting buyers, for their signatures. 
These companies manufacture 85 to 90 per cent, of the 
scrap chewing tobacco, for which the grades of tobacco 
covered in the agreement are used. 

The agreement would be applicable to tobacco 
grown by producers in New York, Pennsylvania, Ohio, 
Indiana, Minnesota, Wisconsin, Connecticut, Massa- 
chusetts, New Hampshire and Vermont. 

The average minimum prices to be paid for the 
tobacco, which the companies would agree to purchase 
between December 1, 1933, and June 30, 1934, are: 
6 cents per pound for 1933 crop tobacco purchased 
direct from growers ; SVo cents per pound for 1933 crop 
tobacco purchased from co-operative marketing asso- 
ciations ; 7 cents per pound for tobacco of crops prior 
to 1933, not stored in a tobacco warehuse, if purchased 
from growers, or 7^/^ cents per pound if ]3urchased 
from co-operatives; 8 cents per pound for tobacco of 
crops prior to 1933, stored in a tobacco warehouse, if 
purchased from growers, and 8V2 cents per pound, if 
purchased from co-operatives. 

The differential of J^ cent per pound in the price 
of tobacco purchased from growers and that purchased 
from co-operatives represents the saving to buyers in 
dealing with an association of producers. The differ- 
entials based on the age and method of storing the 
tobacco are devised to compensate for the loss in 
weight accomj)anying storage. 

The proposed prices are almost twice those pre- 
vailing last year, and are approximately 50 per cent, 
higher than prices paid this season before the first 
conferences with buyers were held in development of 
the tentative agreement. 

The amounts which each of the contracting firms 
would agree to purchase under the agreement are: 
Bloch Brothers, 3,000,000 pounds ; Liggett and Myers, 
4,000,000 pounds; P. Lorillard Company, 7,500,000; 
Seotten-Dillon Company, 4,0()0,(K)0 pounds. This total 
<iuantity, according to oflScials of the tobacco section 
of the Agricultural Adjustment Administration, is 
somewhat larger than the 1933 production of these 
grades, and represents a greater volume of purchases 
than was probable without an agreement. 

In the event of a deficiency in the quantity pur- 
chased, a penalty of 2 cents per pound of such defi- 
ciency is to be paid the Secretary of Agriculture, and 
in the event of a price deficiency in purchases under 
the agreement, the difference between the minimum 
price and the actual amount paid is to be paid to the 
Secretary. 

Buyers may purchase in the ordinary manner, but 
are required to refrain from undue buyings of the 
highest grades. 

On acceptance by the contracting buyers and final 
signature by the Secretary, the agreement will become 
etfective, as of December 1, 1933. 




CopyrUht, 1931, B. J. BejrQolda Tobacco Compsny 



Watch out for the 
signs of jangled nerves 



You've noticed other people's nerv- 
ous habits — and wondered probably 
why such people didn't learn to con- 
trol themselves. 

But have you ever stopped to think 
that jo«, too, may have habits that are 
just as irritating to other people as 
those of the key juggler or coin jingler 
are to you? 

And more important than that, 
those habits are a sign of jangled 
nerves. And jangled nerves are the sig- 
nal to stop and check up on yourself. 

Get enough sleep — fresh air — rec- 
reation — and watch your smoking. 

Remember, you can smoke as 
many Camels as you want. Their 
costlier tobaccos never jangle the 
nerves. 




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comes postpaid. 



CLIP AND MAIL TODAY! 

R. J. Reynold* Tobacco Company 
Depi. n2-A. Winaton-Salem. N. C. 

I enclose fronts from 2 packs of Camels. 
Send me book of nerve testa postpaid. 



Name. 



(PBINT MAMI) 



street. 



I 



I 



atw. 



, StaU 

OS*r azpire* Dveai^ftar 81, tMM 




COSTLIER TOBACCOS 

Camels are made from finer, MORE EXPENSIVE 
TOBACCOS than any other popular brand of cigarettes! 



SMOKE AS MANY AS YOU WANT... 
THEY NEVER GET ON YOUR NERVES I 



-ril^ir lk.ll CAMEL CARAVAN with Cm Loma Ortktstra. Stoopnagle and Budd, Connie ^"^'('i, j?^7 J^^^lSj^ **"! 
lUNk in I ThmrsdayatfP. M.. EST— 8 P.M.. C.S.T. - " - - 



7 P.M.. M.S.T.—6 p. M.. P.S.T.. over WABC Columbia Network 



Tk4 Tobacco World 



May 1$, 1934 



i 

■ 



mmm} rfli 



y 



m:{\\: !i:IP 



iiiirjn III, 



News From Congress 

_ MND 

Federal 
Departments 



i*« mfAn'''m\».>j>Mi 







FAX lovoiiuo to the extent of !|^417,l)00,0()() a 
\rar will ])v raised hv the new tax law sii»:ned 
Mav 10 ]>v l^resident Roosevelt. From the 
standpoint of the tol)aeeo industry, the most 
iinitortant provision in the new law is that which a]j- 
plies hiijfher taxes to the "lonir" cigarettes recently 
put on the market — four of which can be cut by the 
purchaser to ecpial a i)acka.ue of 20 — in an effort to 
evade payment of part of the tax. The law continues 
the $o per 1000 tax on cii^arettes wei»i:hin<i: not more 
than three jmunds ])er 1000 and the rate of $7.20 per 
1000 on heavier ciii^arettes, but ])rovides that "if more 
than ()li» inches in leiiirth thev shall be taxable at the 
rate provided in the precedinir ])aragraph ($3 per 
1000), counting each 2-S inches (or fraction thereof) 
of the length of each as one cigarette." 

A feature of the law is a new ])ublicity provision, 
under which every tax])ayer will be re(|uired to file 
with his return a sei»arate statement showing his name 
and address, total gross income, total deductions, net 
income, total credits against net income and the tax 
payable. This statement is to be made available for 
public examination under regulations to be prescribed 
l>y the Treasury Department. 

Under the law, the Treasur\' will secure $95,000,- 
000 a year from the readoption of the caj)ital stock 
tax, $90,000,000 from the estate tax, .$(>,000,(MM) from 
the gift tax and $2."),000,000 from changes in income 
tax rates. Revision of the ca]utal gain and loss pro- 
visions will return $:;o,(M)0,000, taxation of personal 
holding comjianies will provide $20,000,000, and $10,- 
000,000 will be secured f?'om provisions on reorganiza- 
tions, $.'}r),000,000 from i-hanges in consolidated return 
provisions, $.j,000,000 from |)artnership amendments 
and $.'>H,000,000 from miscellaneous changes. 

The additional revenue thus secured will be re- 
duced by $22,O0O,O(MJ loss through relaxation of the 
excise taxes on soft drinks, candy, furs and jewelry, 
and the tax on produce futures. 

CJ3 Ct3 Cj3 

RdrFMEXTS on the (pjestion of wliether trav- 
eling salesmen shall be j)laced under the codes 
for their particular trades and industries will 
be heard by Deputy Administrator Kenneth 
Dameron of the National Recoverv Act Mav 24. At 
the same time, consideration will be given the problem 
of outsich' salesnKMi engaged in retail distribution, 
whetlM'i' employed bv I'ctail stores or bv national or- 
ganizations. The (piolion ot" code cciverage for trav- 
eling salesmen has i>erplexe(l the lecovery administra- 




From our iVASHINOTON BUREAU 62ZAlMU BUiLOING 



tion practically ever since it began its work of codify- 
ing industry. At the early hearings, representatives of 
the salesmen asked that they be given a minimum 
wage in the codes, but were refused by administration 
ofticials who at that time were seeking to provide min- 
inmm wages and maximum hours for unskilled labor 
only. 

As additional codes were submitted, however, it 
was found that in many instances lengthy schedules 
were incorporated fixing wages for all classes of 
skilled labor, and the administration now believes that 
it may be possible to provide a classification for sales- 
men. 




Cj3 Cj3 Cj3 



PURRED by the approval of tlie President, 
both Senate and House of Representatives are 
moving to expedite enactment of legislation 
authorizing the Reconstruction Finance Cor- 
poration to make loans direct to industry and the Fed- 
eral Reserve Banks to rediscount long-term commer- 
cial j)aper. Approximately $750,000,000 in new capital 
will be thrown into industry through the two agen- 
cies, it is estimated. 

Under an omnibus measure which has been pre- 
pared, incorporating various proposals advanced in 
i)ills introduced in both Houses, the Reconstruction 
P^inance Corporation would be authorized to advance 
money on promissory notes, acceptances, rediscounts 
or otherwise, until January 31 next, to any established 
industrial or commercial business to enable it to ob- 
tain working capital, reduce or refinance its outstand- 
ing indebtedness, or make plant improvements or re- 
placements. Such loans would run for periods as long 
as five years. 

The Administration's approval of the project was 
made known by Jesse H. Jones, chairman of the R. F. 
U. in a letter to Representative Prall of New York, 
chairman of the House subcommittee in charge of the 
legislation. 

''I am authorized bv the President to sav that he 
favors the R. F. i\ being given authority to lend to 
industry, and that he especially wants these smaller 
and medium-sized industries given a full chance to sur- 
vive on eciual terms with the larger industries," Mr. 
Jones wrote. 

"In advocating that the R. F. C. be authorized to 
make such loans it is not with a view to duplicating 
any similar authority given the Federal Reserve 





ere it is 
in a 

nutshell 



THERE are just about three 
common-sense questions to 
ask about pipe tobacco: 

'First, is it made to smoke 
in a pipe? 

"Is it cut in big enough 
flakes to smoke cool and 
mild? 

"Does it have a pleasing 
flavor that leaves you han- 
kering for more? 

*'I guess I've been smoking 
pipes for as many years as you've 
been born, and when it comes 
to pipe tobacco . . . here it is in 
a nutshell. Smoke Granger.*' 



u 



ghCut 



the pipe tobacco that's MILD 
the pipe tobacco that's COOL 

^.^Jolks secfn to like it 



19J4. Liccrrr ft Mvtms To»acc» Co. 



{Continued on Page 17) 



to 



Th€ Tobacco WoHi 



May IS, igs4 



it 



About Smoking 



By Emily Post 




KKADKK fakes mo to task: "M\ dear Mrs. 

ft 

Post : Six months ago our club wrote you col- 
lect ivelv askiu": that vou devote a Sundav ar- 
tide to the discourtesies of those who smoke 
unabashed in public places. It is not to be wondered 
at that men no longer refrain from smoking in the pres- 
ence of ladies, since many of those who othei'w^isc have 
rhe appearance of ladies smoke even more offensively 
than the men. 

**In elevators, for example, men do at least take 
their cigars out of their mouths and often try to keep 
the smoke out of women passengers' eyes. But in 
hotels women are likely as not to go on smoking, and 
while talking with a friend pay no attention to where 
or how they hold a lighted cigarette. I have several 
times had my dress burned. Won*t you please explain 
that both cigars and cigarettes should be discarded 
before entering a crowded elevator ! Won't you please 
protest against the impossibility of enjoying a meal in 
a restaurant, or of going almost any place of amuse- 
ment, when handicapped by pests who smoke! Isn't it 
really high time to set definite rules for these offenses 
to etiquette! 



Cj3 Cj3 (JJ 




X answer then, T agree that it is perhaps time 
to define, within reasonable boundaries, the 
politeness of smoking. But to the first protest 
you make I must reply that it does not seem 
quite fair to ask any man to throw away a perfectly 
good cigar every time he gets into an elevator, nor even 
that a woman must finish her cigarette before getting 
into the elevator of a hotel. The smoke in the mezza- 
nine seats at certain movies and at theaters that permit 
smoking in the orchestra, is very trying to those of us 
whose eves and throats are easilv affected. But the 
answer is that we need not sit in these places if the 
annoyance, whatever it be, overbalances the pleasure 
that has induced us to venture among the smokers. 

The first point that must be made is that in all 
large cities the odds are against those of us who do not 
like to smoke. If ten people hated it to every one who 
liked it, that would be one thing; but where the smokers 
greatly outnumber the non-smokers, I really think the 
only thing we can do is to profit by the song about the 
sneezing baby in the pepper-filled kitchen : 

**I speak severely to my boy, 
I beat him when he sneezes, 

For he can thoroughly enjoy 
The pepper when he pleases." 

In other words, those who have not acquired the 
habit of smoking might as w^ell make up their minds 
that they can perfectly endure an atmosphere of smoke, 
and be pleased al)out it, because they are going to have 
to endure it most of the time. 

29 





UT while I agree that the few have no right to 
interfere with the pleasure of the many, thero 
are certain requirements of propriety and of 
consideration for others that those who smok(» 
nmst observe. First of all, it is unforgivable to lay a 
cigarette, or cigar, on the edge of a table or other piece 
of furniture, ever! Forgetting it and letting it burn 
a charred groove on a table edge, or make a brown scar 
on a marble mantel is merely the result of putting it 
down on wrong places to begin with. Find an ash tray 
to lay it on, or ask for one. Never press a cigarette out 
without being sure that the object pressed on is in- 
tended for that purpose. 

Cj) Ct3 CS3 



X THE category of mere annoyances are all 
the untidiness of average smokers, such as 
spilling ashes on the floor and knocking them 
off into any and all of the parlor ornaments. 
Surely you can look around for something that is ob- 
viously an ash receiver, and, failing to find it, ask your 
hostess. If she seems reluctant to provide you with fin 
ash tray, or tells you she has none, stop smoking and 
carry the offending object outdoors, if possible, or 
wherever you can best kill it and bury it. 

Another detail, vei*y hard to write about, is that 
of the people whose skins seem to absorb the odor of 
nicotine. On the other hand, it is true that others can 
smoke incessantly and yet never carry a trace of nico- 
tine with them. Their secret is probably that of 
counter-balancing their smoking habit, with that of the 
toothbrush and nail-brush habit. Excellent nicotine 
jirecaution also is the use of long holders. Or even bet- 
ter, a continual supply of fresh holders made of jiaper. 
It must be added that the very long holder in the hands 
of the inexpert is a little like the match head sent flyinu 
by the reckless lighter, one is never sure when or what 
may be burned by the lighted end. 

(The foregoing is from Emily Post's daily column, 
"Social Good Taste," appearing in The PhUndelphia 
Inquirer.) 




OLD GOLD'S "QUESTAMONIALS" 

LTHOUGH the Old Gold radio program has 
gone off the air for the summer months, a 
strong advertising campaign will continue to 
run in leading newspapers. Adding to its list 
of outstanding advertising campaigns P. Lorillard 
Company, early this month, inaugurated a new series 
of "Questamonial" advertisements, featuring screen 
and stage celebrities. The first advertisement showed 
Adolph Menjou asking the question — **Why are Old 
Golds so easy on the throat ... so cool and biteless!" 
This inquiry the Lorillard Company answered in an 
open letter. Other stars to be featured in this series 
are Helen Hayes, George Raft and many others. 

Old Gold's summer campaign is one of the most 
extensive to be released in recent years. 

Th4 Tobaeeo World 




Dealers say: 

"^El Producto appeals 
to my pocketbook — it 
always builds profitable 
quality business." 




H 



iW». r. ciCA«co.,iKc.,rHiiJL,»A. 



EL PRODUCTO 

,/or real eitfoiitmat 1 Q cents 



90% Of Growers Under Burley Contracts 




ABULATIOX of reports from state offices in- 
dicates that producers have offered to the 
Agricultural Adjustment Administration 
about 95,0(K) contracts for Burley tobacco 
:i( leage and production reduction. These contracts 
•over 90 per cent, of the eligible farms. The number 
of contracts signed in the Burley sign-up campaign, 
which closed February 17, is within 10,0()0 of the num- 
l»er signed in the flue-cured tobacco program. 

The distribution of signed contracts, by States, is 
ipproximatelv as follows: Kentucky, 49,000; Tennessee, 
2r),900; North Carolina, o500; Virginia, 5000; West 
Virginia, 1400; Ohio, 5220; Indiana, 2400; and Mis- 
souri, 900. 

Approximately 3057 of the Burley contracts have 
I. cell received bv tlie contract records section in Wash- 
ington, and are'now being passed upon for acceptance 
and approval for rental ])ayinents. 

Adjustments noeessary to bring producers' state- 
ments of acreage and production on their contract in 
line with official acreage and production data have 
In-en under way since the close of the campaign. In 
>ome instances' where acreage figures appear to be 
out of line contracts are l)eing held until actual meas- 
nrement of the land can be made. The flow of the 
contracts to Washington, and the speed at which the 
pavments of $20 per acre on land taken out of produ^ 
tion will be distributed, depend upon the co-operation 
of individual producers with the county committees in 
adjusting contracts and correcting any errors, it was 

May IS, 1934 



pointed out by the tobacco section. The first contracts 
to be cleared by state offices, the last step before con- 
tracts are sent to Washington, are those in which 
acreage and production figures have been substantiated 
by acceptable documentary evidence furnished by the 
producers. 

The tobacco marketing cards, submitted by 
growers, \v\\\ in most cases accompany the contracts 
to Washington, so that allotments of production may 
l)e made at the same time as are acreage allotments. 
As rapidly as contracts are accepted these allotments 
will be determined. Compliance with the acreage 
allotment will be checked this summer, and compliance 
as to the production allotment will be determined after 
the 1934 crop is harvested. 

In cases where all the merchantable tobacco of 
the 1933 crop has not been sold, arrangements have 
been made for the marketing cards to be held in the 
county offices until appraisals of the unsold portion 
have been made. The quantity of unsold merchant- 
able tobacco covered by such an appraisal will be en- 
tered upon the marketing card and may be used in 
determining the base tobacco production. This ap- 
praisal work will be done by appraisers of the tobacco 
section. 

The value of the unsold portion of Burley tobacco 
as determined by appraisal will be entered upon the 
marketing card in lieu of the net market receipts and 
will be used as a basis for the first adjustment pay- 
ment. 

t3 



Farmers' Tobacco Income Doubled 




HE total iiieomo of farmers from tobacco ii:rowii 
ill the Tnitcd States during the 1933-34 mar- 
keting year will reach approximately 214 
million dollars an increase of over 100 per 
cent, over the retnrns from sales of the previous sea- 
son, according to an estimate released by the tobacco 
section of tlie Airricultural Adjustment Administra- 
tion. Included in this estimate are payments amount- 
ing to twenty-eight million dollars accruing to })ro- 
ducers who operate under tobacco acreage and pro- 
duction adjustment contracts. Market recei])ts for the 
1933-34 sales season are ex])ected to total 18() million 
dollars as against 105 million dollars for the 1932-33 
season. 

l^rices per i)ound for all types of tobacco combined 
have averaged al)out 2o per cent, higher during the 
current season than tluring the previous season, despite 
the fact that the croi) offered upon the market this 
year is about 200 million pounds, or 16 per cent., above 
world consumption, while that of the 1932-33 sales 
year was ai)i)roximately 200 million pounds below 
world consumi)tiou. 

The higher returns to producers liave been made 
possible, officials of the tobacco section point out, be- 
cause of the jjrompt action of a large ])ercentage of 
tobacco growers in contracting to reduce 1934 pro- 
duction as much below the level of consumption as the 
crop marketed this year exceeds that level. Also, 
domestic manufacturers have entered into marketing 
agreements negotiated by the Agricultural Adjust- 
ment Administration, in which they kave agreed to 
increase prices to producei's. 

Growers of rtue-cured tobacco liave enjoyed the 
greatest increase in income, according to tlie tobacco 
section. The 1933 crop of 73r3 million pounds, wliich 
is more than 100 million pounds in excess of last 
year's consumi)tion, brought growers about 112 million 
dollars, or two and one-half times the returns from 
the previous crop. In addition to increased market 
receii)ts, over 100,000 growers of flue-cured tobacco 



will share in the distribution of $8,000,000 in rental, 
adjustment and piice-e(iualizing payments in return 
for ])articipating in the program to curtain flue-cured 
tobacco production by 30 per cent, in 1934. 

The inccmie to growers of Hurley tobacco from 
market receipts is approximately forty million dollars, 
which is slightly more tlian these growers received 
during the 1932-33 season. However, distribution of 
flfteen million dollars in rental and adjustment pay- 
ments to growers who liave signed contracts to reduce 
Hurley tobacco proiluction in 1934, will begin within 
the next few weeks and will increase the total income 
by approximately 28 ])er cent, over that of last year. 

Market receij)ts from tire-cured and dark air-cured 
types of tobacco during the current season are esti- 
mated to be fourteen million dollais and represents an 
incicase of about ."),") per cent, ovei* the 1932-33 returns 
to growers. Kenta! and adjustment payments of ap- 
proximately $1,()00,000 will be distributed to growers 
of these tyi)es of tobacco. 

Income from sales of Maryland tobacco will be 
increased by about 10 per cent., to a total of $4,(]00,000 
for the current season. To this income will be added 
aj)j)roximately $70,000 in payments to growers for par- 
ticii)ating in adjustment plans. 

Cigar-leaf tobacco growers' incomes from tobacco 
sales during the IJKJ.'J-.'U season are estimated at $10,- 
500,000 as com|)ared with $8,193,000 during the previ- 
ous season. As a result of the 1933 adjustment pro- 
gram for this type of tobacco in which 7') per cent, 
of tlie growers participated, ])roduction was held be- 
low consumj)t ion for the first time since 1!).")0, resulting 
in a slight reduction in carry over. The cigar tobacco 
adjustment plan is being continued for 1934, and it is 
antici])ated that further reductions in acreage and 
production will be made. In addition to the increased 
returns from the sale of the 1933 crop, contracting 
growers of cigar-leaf tobacco are receiving $2,500,000 
in payments, of which over $1,(134,818 has already been 
distributed. 



All Georgia-Florida Growers Under Plan 




('()Mi*LHTK sign-u]) of adjustment contracts, 
covering KiO ])er cent, of the 1934 acreage of 
rieorgia-Florida shade-grown, cigar-leaf to- 
bacco, was reported by the tobacco section of 
the Agricultural Adjustment Administration. The 
contracts, olT<'red by all of the l.")!) growers who are 
producing this \y])v of tobacco in 1934, will result in 
restriction of production l)y one-third of the average 
]>roduction for the i)ast five yea is. 

The large pro]»ortion of the growers of this type 
of tol)acco, who took jmrt in the cigar-leaf adjustment 
jilan for 19.')3, were notified December 27 that the Sec- 
retary of Agriculture would exercise his option under 
the original contract to continue reductions in 1934. 
At that time new contracts ratifying the o])tion, an<l 
offering an opjiortunity for additional growers to par- 
ticii)ate were issued. 

For their co-operation in the lf)34 adjustment ])ro- 
grani growers will receive approximately $120,000. 
The first j»ayment will be at the rate of $30 i)er acre 
on tobacco harvested, to be made before 8ei)tember 1. 

'4 



The second payment of $30 pw acre will be made after 
proof of compliance to tin* terms of the contract has 
been submitted by producers and accepted by the Agri- 
cultural Adjustment A<lniinistration. 

Acream* reduction for 1!)34 is brought alxml by 
making an acreage allotment to each jiroducer. This 
allotment i> equal to the average acreage from which 
tobacco was harvested in the years 1929-33, inclusive, 
unless the average acreage exceeds five acres. If the 
average acreage exceeds five acres, the allotment 
amounts to two-thirds of the average. 

Pi'oduction is restricted under the contract terms 
l>y requiring that the four top leaves of each tobacco 
stalk Im' left unharvested. As the top leaves mak«' 
iij) the lower grades, which constitute a large part of 
the present excess supply, a selective reduction is 
brought about. 

<} rowers have been alloted a total of 2017 acres 
on which tobacco can be grown this season, and i»ro- 
duction is icstricted to a total of l,Hlf»,200 pounds, or 
'j j>ei cent, below eonsumjition during the past year. 

The Tobacco World 




HIbAT)Eli«>MIA. 





BAYUK BUSINESS BITS 

HE following new distributors have been ai)- 
pointed by Bayuk Cigars, Inc.: Beck & Mahl- 
stead, Kenosha, Wis.; J. E. Goold & Co., Port- 
land, Me. ; Rockland Wholesale Co., Rockland, 
Me.; H. C. Shrink & Son, Ludington, Mich. ... In 
conjunction with W. H. Schulte, B. S. (Bayuk salesman 
to you) the KnaufT Cigar Co., Sheboygan, Wis., has 
just completed a successful drive on Bayuk Phillies 
for that territory. . . . Harry Catlin, associated with 
the Bayuk sales* department, has just returned from 
Chicago, bringing back with him glowing reports of 
the increased demand being developed for Phillies in 
the W'indy City through Zolla Brothers, the distribu- 
tors. . . . B. W. Burnside has returned to headiiuar- 
ters, after having spent four weeks in Pittsburgh, 
hijrhlv enthused over the wav Bavuk Phillies continue 
t«t forge ahead in sales in that sector. 



Benjamin Lumley is away on a trip through north- 
ern New Jersey in the interest of his brand, Garcia 
y Vega, which has been show^ing a nice increase in re- 
cent months. 



James Heaney, sales representative for the Amer- 
ican Tobacco Company, was in town last week piomot- 
ing Antonio y Cleoj)atra cigars through Yahn & Mc- 
Donnell. William Anderson, recently appointed sales 
representative for the American Tobacco ('ompanv's 
high-grade cigars, is doing a splendid job, and dis- 
tribution and sales are increasing. 



^Fannie Perez, of Marcelino Perez & Co., Tampa 
manufacturers of Redencion and other high-grade clear 
Havana brands, was in town last week, and visited 
Vahn & McDonnell, local distributors. Now that busi- 
ness definitely is on the ''up-grade" Mannie is wearing 
that **I-tohl-vou-so" smile. 



By one of the happy coincidences of business, 
(icorge ZifTerblatt was calfing on the Linker (Mgar (V)., 
ii! Louisville, on the day of the Kentucky Derby. Did 
he see Cavalcade capture the turf classic? Dunt esk. 
liefore returning to PhiUuh'lphia, he coNcred Indian- 
apolis, diicago, Milwaukee and other distributing 
points. Judging from the broad smile when he got 
hack, he either ditl a thriving job on Habanello on the 
trij)— or had a wad down on Cavalcade's nose — or 
both. 



Trade Notes 



Medalist sales are showing an increase in this 
market since the advent of the new and more generous 
sizes. 



Marcello cigars, one of the '* Independent" brands 
featured and controlled by Yahn & McDonnell, are con- 
tinuing their increase in popularity. 

Cards are being featured in the better retail stands 
throughout the city showing W^ C. Fields, famous 
motion picture comedian, and Mr. Fields is telling the 
world why Hollywood stars prefer Optimo cigars. 

Yahn & McDonnell stands are featuring window 
displays of the Sano cigar, cigarettes, and smoking to- 
baccos' this week and new customers are being won for 
this brand daily. 

William Lesher, factory representative of John 
Swisher & Son., Jacksonville, Fla., was in town this 
week and visited Yahn & McDonnell, local distributors 
of the King Edward. 

John Flanigan, manager of the M. .1. Dalton store 
at 617 Chestnut Street, is featuring a window display 
of better grade pipes and smoking tobaccos this week 
with considerable success. 

George Stocking, Arango y Arango, is expected in 
Philadelphia this week, and John Wagner & Sons are 
ready for him with glowing reports of the increase in 
Don Sebastian sales. 



Polar cigarettes, the new mentholated product of 
the P. Lorillard Co., are being featured in the stands 
around the city and are being \vell received by con- 
sumers. The new brand retails at fifteen cents a pack- 
age of twenty cigarettes. 

The Sweetwood cigarette holder is being featured 
in the M. J. Dalton store, 617 Chestnut Street, with 
good results. This holder consists of a wooden mouth- 
piece to which is attached a paper holder for the cigar- 
ette, and is packed in a sanitary cellophaned i)ackago 
of four holders retailing at 10 cents per package. 

15 



f; 

Mi 



Filler and Binder Adjustment Approved 




ECKKTARY of Ai^niciiltiire Henry A. Wallace 
has approved a 1934 adjiistinent program for 
filler and binder types of cigar-leaf tobacco, 
announcing that he would exercise the option 
contained in tlie 19oo adjustment contracts requring 
acreage reductions to be continued this season. It was 
also announced that growers who did not partici])ate in 
the 1983 adjustment plan would be given an opportunity 
to sign contracts. 

The new program, it is estimated, will reduce the 
acreage of filler and binder cigar-leaf types in the 
Miami Valley, Wisconsin-Minnesota, Pennsylvania- 
New York, and New Engalnd areas, to about 50 per 
cent, of the 1932 acreage. 

Pennsylvania-Xew York producers on the basis of 
100 per cent, participation in this season's reduction 
plan will receive a])proximately $1,3()4,000 in all pay- 
ments for 1934 ])erformance. 

The ])rogram offered for 1934 differs from the 
original cigar-leaf tobacco program in that producers 
now have the option of keeping either one-third, one- 
half, or their entire base acreage out of production, and 
have two additional choices in the determination of 
base acreage. 

Those growers who participated in the 1933 reduc- 
tion program may obtain a *' supplemental first pay- 
ment," amounting to $4 per acre, by accepting the new 
revisions as a supplement to their original contract, 
and submitting satisfactory evidence that payments 
made to them last season were divided with share- 
tenants. 

All participants in the 1933 plan, who do not wish 
to accept the revision as a part of their contract are 
required, under the decision of the Secretary that the 
program continue, to maintain the 50 per cent, reduc- 
tion made bv them last season, for which thev will re- 
ceive payments on the same basis as in 1933. Such 
growers will not sign any supplement to their 1933 con- 
tracts. 

Contracting producers will be required to limit the 
use of the land taken out of production of tobacco. No 
crops for sale can be grown on such land, but feed or 
food crops directly or indirectly for home consumption 
will be permitted on one-half of contract acreage. The 
remainder nmst })e left idle or can be j)lanted to erosion- 
preventing or soil-improving croi)s. If no harvested 
crop is grown on the contracted acreage, the entire 
acreage may be used for pasturage of livestock for con- 
sumption or use on the farm. 

The total acreage planted to crops for harvest in 
1934 in addition to the contracted acreage, cannot 
exceed the acreage of 1932 or 1933, whichever is 
greater, while the acreage of any basic commodity crop 
on the farm cannot })e increased over that of 1932 or 
1933, whichever is greater. 

Other revisions carried in the supplement to 
the contract require that there l)e no reduction in the 
number of share-tenants on the farm, and provide for 
equitable division of the second payment with tenants. 
All new participants nmst sign the supplement. 

The choices for base acreage in the 1933 contract 
were as follows: (a) 80 per cent, of the average acre- 
age planted to tobacco on the farm in 1931 and 1932; 
(b) the entire acreage of tobacco in 1932, ])rovided that 
this acreage did not exceed that of 1931 ; (c) tlie average 
acreage planted to tobacco in 1931 and 1932, provided 

i6 



that the tobacco planted in 1932 was greater than that 
in 1931. The new choices now offered in addition to the 
old ones are: (d) two-thirds of the acreage planted to 
tobacco in 1931 ; and (e) one-half of the acreage planted 
to tobacco in 1930. 

The first payment will be at the rate of $24 per 
acre of reduction recpiired under the option chosen. 
The rate of the second payment will vary according to 
the market value of the crop harvested in 1934, and the 
option chosen as to amount of reduction. In all cases 
minimum payments })er acre are specified. 

A grower who elects to reduce his acreage by 100 
per cent, will receive payments on his entire base acre- 
age; the first payment at $24 i)er acre, and the second 
at $8.50 per acre. If the producer has participated in 
the 1933 reduction program and becomes eligible for'thu 
sui)plemental payment, he will receive $4 per acre in 
addition to other payments. 

A grower who chooses the 50 per cent, reduction 
will receive payments on half of his base acreage ; the 
first payment at the rate of $24 per acre, and the second 
payment for each acre will be 40 per cent, of the aver- 
age value of each acre of tobacco harvestcil by such 
grower in 1934, wnth a minimum rate of $17 per acre. 
In case the supplemental payment is received, it will be 
made on one-half of the base acreage. 

The grower who selects the oi)tion for 33-1/3 per 
cent, reduction from his base will receive $24 i)er acre 
on one-third of his base acreage in the first payment ; 
with a second payment for each acre equal to 35 per 
cent, of the average value of each acre of tobacco har- 
vested by such grower from his base acreage in 1934, 
with the minimum second j)ayment ])laced at $14 per 
acre. The supplemental payment will be made, if the 
grower qualifies, on the same acreage as the other pay- 
ments. 



TAMPA PRODUCTION INCREASING 

Production of cigars, all classes, in Tampa fac- 
tories during the month of April, 1934, totaled 23,664,- 
496, as compared with 23,383,380 for the same montli 
of 1933. March, 1934 production was 25,570,000 cigars. 



A proposal to conduct a cigar slogan contest as .i 
means of stimulating cigar smoking was voted down 
at a meeting of the New York Leaf Tobacco Board of 
Trade at a lively and well-attended meeting on May 10. 

I. B. AVhite, manager of the (*igar Department of 
John Wagner & Sons, has just returned from a trip 
through eastern Pennsylvania in the interest of their 
brands and reports a very successful trip. There is 
evidence of a substantial increase in demand for Class 
C merchandise, and their Monticello brand is enjoy- 
ing its full share of this increase. 



Twenty-three new members were added to the Re- 
tail Tobacco Dealers of Philadelphia at a meeting in tin' 
Hotel Adelphia on May 3. William A. Hollingsworth, 
president of the Retail Tobacco Dealers of America. 
Inc., came up from Washington to give the latest in 
formation on the pending code. (\ Pickett, socn^tary 
of the Retail Association of Druggists, spoke on the 
necessity of organization. 

Tkg Tobacco World 



News from Congress 

(Contimied from Page 10) 



Ihiiiks, but to supplement that authority and keep open 
a^ many avenues for such credit as possible. 

"There is undoubtedly a need of credit for small 
and medium-sized industries, and while some of the 
loans will carry more than the usual credit risk, unless 
the demand is met our relief ]jroblems will continue 
In multiply. A dollar loaned is certainly better than 
one given in relief, and such loans can be made with 
111 tie ultimate loss. 

''The R. F. C. has been dealing with all kinds of 
(1 «'dit problems for more than two years, and while we 
liavc no desire to continue lending a moment longer 
than is necessary, there seems no good reason why our 
experience and facilities should not be made available 
1o this class of citizenship until credit is actually be- 
ing otherwise extended." 




FLUE-CURED GROWERS GET TWO AND ONE- 
HALF MILLION 

TOTAL of 40,379 checks, rei)resenting $2,626,- 
r)22 in rental and price etpudizing payments, 
had been disbursed up to April 24th to 
growers parlicipating in the program to re- 
duce by 30 per cenl. their 1934 acreage and production 
ol' Hue-cured tobacco, it was announced by the Agri- 
(iiltural Adjustment Administration. 

Of the total checks issued, 32,390, amounting to 
$1,359,975, are in payment for rental of acreage taken 
nut of production, wiiile 13,989 checks totaling $1,266,- 
r)4(), are price-equalizing payments, available to con- 
tracting producers who sold their 1933 tobacco before 
the marked rise in prices. 

The payments were divided among states, as fol- 
lows: Florida, $23,082 rental payments, and $41,111 
price-equalizing payments; Georgia, $187,460 rental, 
and $458,689 price J'qualizing payments; North Caro- 
lina, $703,869 rental, and $325,561 price-equalizing 
payments; South (*arolina, $181,888 rental, and $441,- 
<i22 price-equalizing payments; and Virginia, $263,075 
rental, and $161 price-ecpializing payments. 

To date, over 86,200 adjustment contracts for flue- 

• ured tobacco, together with 40,600 applications for 
pi ice-eciualizing payments have been received in Wash- 
ington and recorded by the contract records section. 
Of those contracts received thus far, 69,370 have been 
admiiustratively approved for payment, as have also 

1,181 applications for price-equalizing payments. 
Officials of the tobacco section expect that the bal- 
nnce of the 105,000 contracts offered in the flue-cured 

ii^ni-up will be received in Washington for examina- 
tion and acceptance within the next few weeks. 
<lrowers participating in the 1934 flue-cured tobacco 
adjustment program will receive a total of approxi- 
mately $17,000,000 in rental, adjustment and price- 

• ••lualizing payments. Of this amount more than 
^8,000,000 is being paid this spring. 



Antonio v Cleopatra cigars are being featured in 
Vahn & McDonnell stands, and other retail stands 
lliroughout the city with four new sizes with punctured 
' ads. This innovation is proving popular with the 




CIGARS 



P. 



LORILLARD GO'S 
Quality 

2 ^^"^ S^ 

Cigars 

Meeting the public's demand 
for quality cigars 
moderately priced 



NEW 

CURRENCY 

CIGARS 




2 

for 

5c 



Our Other Popular 2 for S< Cigars 

JAMES G. BLAINE • • POSTMASTER 

I. A FRAOSA • SARONA • WAR FAGLE 




lu 

<liscriminating smokers. 
A^fly '5, '934 



TOBACCO TRADE ORGANIZATIONS 

TOBACCO MERCHANTS ASSOCIATION 
OF UNITED STATES 

JESSE A. BLOCH. Wheeling. W. Va ...President 

JULIUS LICHTENSTTEIN. New York. N. Y Vice;President 

WILLIAM BEST, New York. N. Y Chairman Executive Committee 

MAJ. GEORGE W. HILL. New York, N. Y Vice-President 

GEORGE H. HUMMELL. New York, N. Y Vice-President 

H. H. SH ELTON. Washington. D. C Xl^^''**!^'^"* 

WILLIAM T. REED. Richmond. Va X?"^''"^^*"! 

HARVEY L. HIRST, Philadelphia, Pa Vice-President 

ASA LEMLEIN. New York. N. Y •• :•••■•• .-Treasurer 

CHARLES DUSHKIND. New York. N. Y Counsel and Managing Director 

Headquarters, 341 Madison Ave., New York City 

RETAIL TOBACCO DEALERS OF AMERICA. INC. 

WILLIAM A. HOLLINGSWORTH. 233 Broadway New York. N. Y ....President 

CLIFFORD N. DAWSON. Buffalo, N. Y Executive Vice President 

JAMES C. THOMPSON, Chicago, III Treasurer 

ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS 

JOHN H. DUYS. Kew York City ••.••••;:■ •^'""I^^"* 

MILTON RANCK. Lancaster, Pa ••F'"] X-"'d '•^*"! 

D EMIL KLEIN, New York City Second Vice-President 

LEE SAMUELS. New York City Secretary -Treasurer 

NATIONAL BOARD OF TOBACCO SALESMEN'S 

ASSOCIATIONS 

ABE BROWN. 180 Grumman Ave., Newark, N. J ...President 

ALBERT FREEMAN. New York, N. Y -F'"* Vice-President 

IRVEN M. MOSS, Trenton, N. J Second Vice-President 

A. STERNBERG. Newark, N. J Secretary 

RETAIL CIGAR STORE ASSOCIATION OF PHILADELPHIA 

MORRIS LEVITONE r.-'A President 

SAMUEL MAGID, 2001 N. Mervine St.. Philadelphia, Pa Secretary 

THE NATIONAL ASSOCIATIONS OF TOBACCO 
DISTRIBUTORS, INC. 

E ASBURY DAVIS, Baltimore. Md ..•••• President 

TOSEPH KOLODNY. 200 Fifth Ave., New York, N. Y Secretary 

GEO. B. SCRAMBLING. Cleveland, Ohio Treasurer 

UNITED STATES TOBACCO DISTRIBUTORS ASSOCIATION 

lOHN F BROWN President 

HERMAN H. YAFFE, 301 Fox Building, Philadelphia. Pa Secretary 



JUNE 1, 1934 



Establithed 1886 



"BEST OF THE BEST" 




"•••'"'—' "' A. SANTAELLA & CO. 

Office, 1181 Broadway, Naw York Citf 

FACTORIES: Tampa and Ktp Wtat, Florida 



OUR HIOH-OKADE NON-EVAPORATINO 

OGAR FLAVORS 

Make tobacco maUow and amooth in charactat 
and Impart a moat palatable flavor 

FUYORS FOR SMOKING and CHEWING TOBACCO 

Write for Llat of Flavors for Special Branda 
EMTUN. AIOMATIZBI. BOX FLAVOKS. PASTE SWEETENEIfl 

FRIES ek BRO.. 02 Reade Street. New York 



A»; ;.»y,':vty;:.V»yyA»y;',V»V,'l.Vt/;tX»y.'^VtA'tV»y^:.Vtvj;.V»A'lV»A''A»A'>t/,^^^^ 



Classified Column 

The rate fot this column is three cents (3c.) a word, with 
a minimum charge of seventy-five cents (75c.) payable 
strictly in advance. 



^\:f)i\'rrec,ytir,y^\.yi\7ft<^yt\'rsCur(^'yt\-:rt\tf«;^,.^^^ 



ft^'o^^V.ri, 



POSITION WANTED 



CIGAR SALESMAN COVERING EASTERN PENNSYLVA- 
NIA and Local Territory desires connection. Large following. 
Address Box No. 580, "The Tobacco World." 

Newspaper and magazine advertising executive, thoroughly 
experienced, formerly with local newspapers and agencies, and also 
advertising manager. Position with firm desiring an advertising man, 
salesman or assistant to manager. Knows marketing, merchandis- 
ing and distribution. Salary not as important as opportunity to 
demonstrate actual worth and ability. References the highest. 
Address, F. H. Riordan, 5915 Webster Street. Philadelphia, Pa. 

CIGAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON 
Automatic Machines, wants a position. Also instructs beginners. 
Address Box No. 558, "The Tobacco World." 

FOR RENT 

OFFICE AND FLOORS FOR CIGAR MANUFACTURING OR 
STORAGE — No parking restrictions; good location; low rent; 
freight elevator and loading platform. Will divide. Metals Coating 
Company of America, 495 North Third Street, Philadelphia. 

HAVANA CIGARS 



BEER WITHOUT CIGARS, IS LIKE KISSING WITHOUT 
LOVE — Adopt as your slogan, "Kiss your beer, but love your ci- 
gars." Specially those Havana blended, "Good to the last Puff," 
manufactured by A. Ramirez & Co., Post Office Box 1168, Tampa, 
Fla. Write them for particulars today. 



Tobacco Merchants' Association 
Registration Bureau, jEw^yoS'cm 

Schedule of Rates for Trade-Mark Services 
Effective April 1, 1916. 



Registration, (see Note A), 


$5.00 


Search, (see Note B), 


1.00 


Transfer, 


2.00 


Duplicate Certificate, 


2.00 



Note A— An allowance of $2 will be made to members of the Tobacco Mer- 
chants' Association on each registration. 

Note B— If a report on a search of a title necessitates the reportinf of raore 
than ten (10) titles, but less than twenty-one (21), an additional charge of One 
Dollar ($1.00) will be made. If it necessitates the reporting of more than twenty 
(20) titles, but less than thirty-one (31), an additional charge of Two Dollars 
($2.00) will be made and so an additional charge of One Dollar ($1.00) will b« 
made for every ten (10) additional titles necessarily reported. 



NEW REGISTRATION 
HAVA BOY: — 46,321. Vov cigars, cigarettes and tobacco. April 30 
1934. Consolidated Litho. Corp., Brooklyn, X. V. 



TRANSFERRED REGISTRATIONS 
MELLO-GLO: — 46,296 (Tobacco Merchants' Association). For all 
tobacco products. Registered January 2i, 1934, by Consolidated 
Litho. Corp.. Brooklyn. X. Y. Transferred to Ha'vatampa Cigar 
Co., Tampa. I'la.. March 26th. 1934. 
SMOKE KING:— 24,185 (Trade-Mark Record). For cigars. Regis- 
tered March 13. 1901, by American Label Co., New York, X. Y. 
Transferred to .Morris .S. Kayner. Xew York, X. Y., and re-trans- 
ferred to Twentieth Century Cigar Corp., .\ew York, N. Y.. April 
24. 1934. 
SILVER BOW CLUB:— 35,207 (United Registration Bureau). For 
cigars. Registered Xovember 27, 1908, bv .Adolph Blank. Butte, 
Mont. Transferred to II. Feifer & Co.. Xew York. X. Y., and re- 
transferred to M. Rosen, Xew York, N. Y., .^pril 24, 1934. 



The Wajifiior biand is for<i:in«:: ahead liere since the 
advent of the achlition of several new sizes to tlie line. 



Frank Rwick, prosldent of Health Cipfar Co., and 
of Simpson, Stndwell & Swiek, stopped off in Philadel- 
jjhia, pr(»vious to embarking on an extensive trip 
through the West. 



John McOnerty, of IJomeo y Julieta, dropped in 
on his local distributor (John Wagner & Sons) to re- 
port a great improvement in demand for his brand, 
and also reported that shipments from Cuba were now 
arriving regularly, although not in sufficient quantity 
to meet the increasing demand. 



"What a 


welcome visitor 


The Tobacco World 


must be to wholesalers and 


retailers ! 




•'If they 


are only half as 


interested 


in reading it as 


we ourselves are, we're glad 


our ad is 


in it regularly" — 




says an advertiser. 




iiifiiiiiniiinHi 



niiiiiiiiitiim 



/OLUME 54 



JUN 6 - mi 






o 



n 



COMMON SENSE 



The importance of attractive and dependable containers for 
fine cigars is recognized by the progressive cigar manufacturer. 

Generally the brands that are increasing their goodwill in this 
present analytical market are packed in the new improved 
AUTOKRAFT cigar boxes. 

Cigar Manufacturers who have not investigated the value of 
the merits and economies of the splendid and inviting package 
may obtain complete details promptly by addressing the 

AUTOKRAFT BOX CORPORATION. 




Phi la., Pa, 
Hanover, Pa. 
Cincinnati, Ohio 



^ —^ - — w ... mw York, Pa, 

AUTOKRAFT BOX CORPORATION Chicago, in. 

Lima Ohio Detroit, Mich. 

A NalioixWidc Service Wheeling, W. Va. 





iiiiinmiiiiifn 




PUBLISHED ON THf 1ST AND 15th OF EACh'mONTH AT 236 CHESTNUT ST.. PHILA.. PA 




After all 
^nothing satisfies li 
a good cigar 



he 



WOODEN BOXES 

Are the Only Natural Humidor for Cigars, 



Pack your cigars in wooden boxes and preserve 
their delicate aroma, mellowness and flavor 
right up to the time they are passed over the 
counter to the customer. 

Discriminating cigar smokers prefer to select 
their favorite brand from a wooden box— and it's 
good business to cater to the dealer and con- 
sumer by packing your cigars in wooden boxes. 




WHEN BUYING CIGARS 

member fhat Regardlett of Prict 

THE BEST CIGARS 

ACS PAGUS i;« 

WOODEN BOXES 




THE TOBACCO WORLD 



Vol 54 



JUNE 1. 1934 



No. 11 







JOKE'S where we beat the pessimists to it. The 
April withdrawal figures reveal a loss for 
snuff of 7 i)er cent, and a loss for manufac- 
tured tobacco of 5 1/3 per cent. Those are 
llie only figures over which the calamity howlers can 
Liloat, so let's escort them into the crying room, hand 
llicm their crying towels, and leave them alone to 
enjoy their bad health. There can be Init little solace 
lor them in these minor losses; certainly the manu- 
I'acturers in those two classifications are not worrying 
unduly. 

But, my frauds, look over the other figures, not 
only for the month of April (page 10), but also for 
the ten months' withdrawals (page 17). Look over 
the cigar figures, each bracket and the total. Look 
over the cigarette figures in each division. 

£33 Ct3 t33 

AZK down these percentage gains for cigars: 
dass A, 10.83 per cent.; Class B, 34.17 per 
cent.; (lass C, 16.28 per cent.; Class D, 8.90 
j>er cent.; Class E, 11.78 per cent. They total 
up to 11.62 per cent. (38,813,616 more regular cigars) 
tlian were manufactured last year. Not to be out- 
done, little cigars made the uni)recedented gain of 
r)7.23 per cent., or, in other words, 6,r)22,r)75 cigars. 
Cigarettes gained 16.57 per cent. 

Cj3 It] Ct) 

lEX gaze down the ten-months' table. If you 
are not a confirmed grouch, you will be tempted 
to throw your hat in the air and exclaim: ''Oh 
bov, at last we have turned the corner of the 

tobacco road!'* 

Just to make yourself feel better still, ponder over 
the accumulated record for the first four months of 
this year. Cigarettes sh(»w a gain of 6,8.V),12r),2r)7 
(that's getting close to seven billion, y'understand), 
or 17.45 per cent. Cigars increased to tlie tune of 
140,349,523 (140 million plus), or 10.43 per cent. 

Things are looking uj) in our business! 

Cj3 CS3 CJ3 

.VTHEH'S Day will be celebrated <»n Sun- 
dav, June 17th. If there is one class of 
merchandise ])eculiarly approj)riate as a gift 
to dad in celebration of his <lay, it is i)re- 
cisely that merchandise which is ofTered for sale 
in cigar stores — cigars, cigarettes, smoking tt)bacco, 
pipes, lighters, etc. If tliere is not a substantial 
volume of sales of these tobacco and allied products 





directlv due to the occurrence of Father's Dav, it will 
be solely because those engaged in the manufacture, 
wholesaling and retailing of tobacco products are not 
as good business men as those engaged in the flower 
and candy businesses, who make plenty on the cele- 
bration of Mother's Day. Are you willing to admit, 
Mr. Manufacturer, that the nurservman or the candv- 
maker have something on you in business acumen! 
Are you willing to admit, Mr. Jobber, that the whole- 
salers of flowers and candy are better sales promoters 
than you are! Are you willing to admit, Mr. Retailer, 
that you should take your hat off to the florist or the 
candy store proj)rietor when it comes to taking ad- 
vantage of a situation made to order for the benefit 
of your business? On the answers to those (juestions 
depends the volume of extra business that will result 
from the observance of Father's Dav. 



Cj3 Cj3 ft] 



VER get a swell idea and then discover that 
somebody else has identically the same idea 
and has put it forth in better style than you 
could dream of doing it yourself? That's ex- 
actly what has hai)i)ened in connection with what we 
fondly imagined were some original thoughts about 
suinmei- slumps. Printers' Ink has turned the trick 
so well that we have more than the ordinary pleasure 
in reproducing its expression of the idea: "We fear 
that our warning comes too late; but here it is almost 
.lune, and American business is away behind in its 
plans for this summer's summer slumping. 

"A good slump, a slump of which management 
may be proud, a slump that, on a chart, really looks 
like something — such a slumj) must be deliberate. A 
first-class slump doesn't just happen. It needs to be 
roughed out in conference, ])olished in committee, 
written into the budget, and then carried out, vigor- 
ously, by the general executives, the department heads 
aiul all the subordinates. Indeed, to insure perfec- 
tion in execution, perhai)s the whole thing ought to 
be eml)odied carefully in a summer-slumping manual. 




Cj3 CjD Ct3 



KRTAIXLY, tradition dictates that, as the first 
step toward bringing about a dog-day's drop 
in volume, advertisers must curtail their ad- 
vertising. A more positive exi)edient — and 
one that hasn't been tried thus far, because, seemingly, 
no one has thought of it — would l>e to switch the copy 
theme to read: ''Customers: Please don't disturb us 
during June, July and August. We'll be slumping." 




The TOBACCO WORLD (established 1881) is published by Tobacco World Corporation; Hobart B. Hankins, President and Treasurer; 
Gerald B Hankins, Secretary. Office, 236 Chestnut Street, Philadelphia. Pa. Issued on the 1st and 15th of each month. Subscriptions, avail- 
able only to those engaged in the tobacco industry, $2.00 a year. 20 cents a copy; foreign, $3.50 a year. Entered as second-class mail matter, 
December 22, 1909, at the Post Office, Philadelphia. Pa., under the Act of March 3, 1879. 



: 



"Yot wc fear that neither advertising curtail- 
ment noi' a (liiect apjx'al lo custoincrs asking them not 
to buy, will do any gooil now. l^'or advertising, instead 
of running down, has been gathering momentum. Ad- 
vertising volume is iuoreasing. 



** Possibly business will be able to achieve some- 
tliing of a shnnj), anyway. But, from this distance, it 
seems destined to be nothing better tiian makeshift. 

*'In fact, we shall go further and i)redict tlnit, as 
c(un])ared with the slumps of other years, this one will 
l)e a flat failure." 



Stocks of Leaf Tobacco in U. S. 



''BilF' HoIIingsworth Gets Swell Dinner 




X TEXDEKING this dinner it is our hope that 
you will accei)t tlie same as a slight token of 
the loyalty and apj)reciation whieh you have 
always inspired in those who have served with 
you and know you." That ti'ilmte, ])rinted at the head 
of the menu, sounded the keynote of what ])artici])ants 
described as the swellest function of its kind thev had 
ever attended — the testimonial dinner to William A. 
HoIIingsworth, ])resident of the Ketail To))acco Dealers 
Association, tendered l)y the retail tobacco trade in 
the Hotel Astor, New York C'itv, Saturdav evening, 
Mav26th. 

^Manufacturers, jobbers, stipplr men, all joined 
with the retailers to do honor to "Bill" HoIIingsworth. 
By the hundreds they gathered, certainly more than 
a thousand in all, some of the i)articipants placing the 
number of diners close to the mark of 1500. 

A regular guv, a square shooter and a born leader 
— in those simple i)h rases may be summarized the 
tributes to the guest of honor in the addresses of the 
l)rogrammed sj^eakers — Matthew AVoll, I. M. Ornburn, 
Arthur S. Meyer. Siegfried Hartman, Samuel S. Perry, 
Hon. Samuel Levy, Hon. Royal S. Copeland and Hon. 



Kobert F. Wagner. Lou Tjieberman was the official 
toastmaster. 

On the dais, in addition to those, were: Charlie 
Landau, Herman Lesky, Eric Calamia, William Gold- 
stein, I. H. Lefkowitz, Max Berliner, Moe Weinstein, 
Arthur S. Meyer, Sam Katz and Ed Castro. 

All praise is due to the officers and members of 
connnittees for the brilliance of the aiTair: Lou Lieber- 
nian, chairman; I. H. Lefkowitz, vice-chairnnm; Wil- 
liam Goldstein, secretary; Max Berliner, treasurer. 

Banquet Committee: Herman Lesky, chairman; 
Max Berliner, Edward Castro, Jack Edelstein, Her- 
man J. Goldwater, William Goldstein, Sam Katz, 
Charlie Landau, Ben L. Laschow^ Lou Liebernum, 
Fred Miller, Joe Saremsky, Paul Schleissner, Moe 
Weinstein, Morris Weiss, Arthur Wilhelm. 

Reception Connnittee: Ben L. Laschow, chairman; 
Eric Calamia, Jos. Freeman, Joseph Friedman, Manny 
Goldstein, Max Goldstein, Chas. Greene, B. B. Horo- 
witz, Michael Kohen, Charles Landau, Phil Lottnuin, 
Leo Matusow, Jonas J. OllendortT, Moe Packer, Sam 
Singer, Lou Schneider, Morris Weiss. 

Guest Connnittee: Sam Wasserman, Carl Avery 
Werner, Ralph S. Williams. 



Out Today! ''Memoirs of Alex Smart 




HOSE who followed the ** Memoirs of Alex 
Smart" by- A. Joseph Newman, when they aj)- 
peared in serial form, will welcome their col- 
lection into a handy little pocket size volume, 
which has lately come from the press. The ' ' Memoirs ' ' 
represent the life and opinions of one Alex Smart, self- 
confessed super-salesman. In his opening chapter the 
great man strikes the keynote of the theme which runs 
throughout his commentaries: **Pm going to take you 
behind the scenes and put the spotliglit on the nefari- 
ous juactices and stu])end(uis stupidities of sales mana- 
gers. The fact that I have been with ])ractically every 
cigar manufacturer in the I'nited States for ])eriods 
of two weeks to at least two months, amjjly <pialifies 
me to pass judgment on what's wrong with them, and 
what's right with us salesmen." 

With this introduction. Smart proceeds to take the 
hide otf "the average employer who foolishly exjX'cts 
his employees to work as diligently as he does," and to 
tell what's the matter with a cock-eved business world 
in which everyone is out of step except Alex. 

If you are a salesman, or have ever been in the sell- 
ing end, the "Memoirs of Alex Smart" will go straight 
to your funny bone. But j)erhaps Mr. Newman has a 
more serious purpose than merely to provide a sue- 
eession of hearty laughs, interspersed with «puet 
chuckles for the reader. In his foreword the authoi- 
explains. "Mr. Smart is not a fictitious person. Dur- 



ing my thirty years of selling I have heard every om 
of Alex's opinions voiced by one or another of my fel- 
low^ salesmen. Yes, Alex is real enough — in that he is 
a composite of many actual persons. 

*'I trust that the Memoirs will be received in the 
good-natured spirit in which they are written — and as 
a healthful and pleasant antidote to the traces of Alex 
Smart ism which are likelv to be found in the best oi 



us. 



» » 



All in all, the ** Memoirs of Alex Smart" is a great 
little book. To those who can read between the lines it 
provides some solid food for thought, liberally salted 
with delighted humor. You shouldn't miss it. 



RETAILERS' CONVENTION 

Retail Tobacco Dealers of America, Inc., will hold 
its annual convention at the Stevens Hotel in Chicago, 
111., on June IJUh and 20th. All members of the asso- 
<Mation are invited to attend this convention. An inter- 
esting program will be arranged for the delegates. 

The Convention will open at 10 A. M., Tuesday 
morning, June llMh, and will adjourn Wednesday after- 
noon, June 20th. 

Aside from the general business of the Convention, 
a new Board of Directors will be elected. All members 
who desire to attend, please connnunicate with Wm. A. 
HoIIingsworth, President, Retail Tobacc4> Dealers ol* 
America, Inc., 233 Broadway, New York City. 

The Tobacco World 




ITOCKS of leaf tobacco in the United States 
owned by dealers and manufacturers amounted 
to 2,441,454,000 pounds on April 1, 1934, com- 
pared with 2,277,904,000 pounds on April 1, 
1933. This is an increase in the total stocks of 103,- 
.')r)0,000 ])ounds over the stocks of a year ago April 1st. 
I'rom January 1, 1934, to April 1, 1934, total stocks 
increased 2r>9,l 12,000 pounds. The increase during the 
.same period of 1933, namely, January 1, 1933, to April 
1, 1933, amounted to only 133,171,000 pounds. 

Stocks of tlue-cured tobacco on hand A\n-\\ 1, 1934, 
were 784,925,000 i)Ounds, compared with 680,280,000 
)M»unds on April 1, 1933, an increase of 104,(345,000 
pounds over the holdings of a year ago. During the 
first quarter of 1934 fiue-cured stocks decreased 
7.'5.1 99,000 pounds compared with a decrease of 89,217,- 
000 pounds during the first quarter of 1933.. Stocks 
(»r Tvpe 11 on April 1, 1934, were reported as 339,028,- 
1)00 pounds; Type 12 as 266,234,000 pounds; Type 13 
as 128,670,000 pounds, and Type 14 as 50,993,000 
])ounds. The detailed report by groups of grades 
shows about the same relative proportion of tobacco 
in the various groups. 

Stocks of fire-cured tobacco were reported as 
•225,813,000 pounds on April 1, 1934, compared with 
242,389,000 pounds on April 1, 1933. Total fire-cured 
stocks were about sixteen and one-half million pounds 
lower than they were a year ago April 1st, and about 
lifty-four million pounds higher than they were at the 
beginning of the previous quarter. This increase dur- 
ing the quarter is normal as most of the previous 
year's crop is nuirketed during this period. Virginia 
lire-cured, Tyi)e 21 stocks reported as 36,884,000 
pounds on April 1st, were about one million pounds 
higher than a year ago. Type 22, reported as 136,370,- 
n()0 pounds on April 1st, showed a decrease of nearly 
seven and one-half million pounds under the previous 
vear's stocks. Tvpe 23 stocks were reported as 
47,748,000 i)ounds and Type 24 as 4,811,000 pounds on 
April 1, 1934. 

Burley stocks were about eighty-five and one-half 
million pounds higher on April 1, 1934, than they were 
April 1, 1933, and 244,341,(H)0 jmunds higher than on 
the first day of this year. The April 1, 1934, report 
shows 829,593,000 pounds on hand which is a record 
high for Burley stocks. Maryland tobacco stocks were 
about six million pounds lower on Ajjril 1st than on 
January 1, 1934, but are still slightly higher than the 
juevious year's stocks. The April 1, 1934, report 
shows 31,921,000 pounds of Maryland tobacco on hand. 
One-sucker stocks on April 1, 1934, amounted to 
41,178,000 pounds, or about a quarter of a million 
pounds higher than the previous April 1st stocks. 
(Jreen River stocks, reported as 37,684,0(K) pounds on 
April 1, 1934, were 6,332,000 pounds lower than a year 
ago. Virginia sun-cured stocks totaled 4,431,000 
pounds on April 1st more than two million pounds 
iiigher than at the beginning of this year and nearly 
a million pounds higher than the previous April 1st. 
Miscellaneous domestic stocks were reported as 
2,323,000 pounds antl foreign-grown other than cigar 
leaf as 80,477,000 pounds on Ai)ril 1, 1934. 

April 1st Cigar Leaf Tobacco Stocks 

Stocks of American-grown cigar fdler types 
nmounted to 181,637,000 pounds on April 1, 1934, com- 

JuHC I, 1934 



pared with 178,675,000 pounds on April 1, 1933, an 
increase of nearly three million pounds. Type 41, 
Pennsylvania seedleaf stocks on April 1, 1934, were 
103,405,000 pounds; Type 42, Gebhardt, 21,546,000 
pounds; Type 43, Zimnier, 25,564,000 pounds; Type 44, 
Dutch, 8,613,000 pounds ; Type 45, Georgia and Florida 
sun-grown, 1,347,000 pounds; and Type 46, Porto 
Rican, 21,162,000 pounds. The detailed report by 
groups of grades shows about 77 per cent, of the total 
filler type stocks in the C group and about 18 per cent, 
in the X group. 

The cigar binder type stocks were only a little 
over a million pounds higher on April 1, 1934, than 
they were on April 1, 1933. Total binder type stocks 
were reported as 196,425,000 pounds on April 1, 1934. 
Type 51, Connecticut broadleaf stocks, were 37,829,000 
pounds on April 1, 1934; Type 52, Connecticut Havana 
seed, 35,688,000 pounds ; Type 53, New York and Penn- 
sylvania Havana seed, 3,382,000 pounds; Type 54, 
Southern Wisconsin, 72,309,000 pounds; Type 55, 
Northern Wisconsin, 47,217,000 pounds. The detailed 
report by groups of grades shows that of the total 
binder type stocks reported 4,496,000 pounds, or 2^4 
per cent., are of wrapper quality; 74,619,000 pounds, 
or 38 per cent., are binders ; 10,226,000 pounds, or 5^/4 
per cent., are fillers; and 106,523,000 pounds, or 54^A 
per cent., are stennning grade or X group tobacco. 

Shade-grown wrapper tyi)e stocks were about a 
million and a quarter pounds lower on April 1, 1934, 
than on April 1, 1933, and about a million pounds low^er 
than on January 1, 1934. The April 1, 1934, report 
show^s a total of 13,751,000 pounds on hand. Connecticut 
Valley Shade, Type 61, stocks were reported as 
10,313,000 pounds, and Georgia and Florida Shade as 
3,438,000 pounds. Of the total shade tobacco stocks 
reported 9,632,000 pounds are rej)orted in the A group 
as being of actual wrapper quality. 

Foreign-grown cigar leaf tobacco stocks were re- 
ported as 11,296,000 pounds on April 1, 1934. 



MRS. PAUUNE UNGAR 

Following a long illness Mrs. Pauline Ungar, 
w^dow of the late Alexander Ungar, and president of 
Alexander Ungar, Inc., one of the largest firms in the 
country manufacturing cigar containers, passed away 
at her home, 2209 Andrews Avenue, New York City, 
in the evening of Tuesday, May 22d. 

Mrs. Ungar was widely knoum for her welfare 
work and for her many charities in New York (*ity. 

Services were held on Thursdav, Mav 24th, at 2 
P. M., in the West End Chapel at 200 W.* Ninety-first 
Street. The seating ca])acity was exhausted and many 
stood during the services. The entire front of the 
chapel was banked with floral tributes. The casket was 
covered with a blanket of roses which had been sent 
by the employees of the factory. 

Many ])rominent in the cigar and cigar container 
industry were in attendance. 

Mrs. Ungar is survived by two sons, Harry F., and 
Dr. Stanley tlngar, and two sisters, Mrs. Serena Klein 
and Miss Margaret Fireman. 

In respect to the memory of ^Frs. Ungar tli(^ New 
Brunswick factory was closed all day Thursday. 



MIA. 





PRODUCT— PUBLICITY— PROMOTION 

V YOU want to know the reasons for \hv grati- 
fying:: sales of IMiillies and other Baynk |)r()(l- 
ucts in Xew Jersey, executives of tlie oomi)a]iy 
will enumerate for you, with pleasure, the 
sniokinu" public's acceptance, plus sincere and elTective 
advertising, plus sales ])roinotion elTorts of the distrib- 
utors: Jersey City Tobacco Co.; Hayuk's Newark 
Branch; A. *D. Hanauer (Trenton); Andrew Jacoby 
(Atlantic Citv); F. W. I.avton c^' Son (Pennsgrove) ; 
and AVilliani I). Callahan, Atlantic Tobacco Co. (Wild- 
wood ) . 

A niighty nice job on Phillies is being done by 
Joseph Whitehead, S]iringfield, Mass. 

The Xew York office of Bayuk Cigars, Inc., is mak- 
ing marked ])rogress in the sale of Phillies and other 
brands of the com])any under the able management of 
Fred H. Brown. 

In San Francisco and tributary regions "Bayuk 
Phillies are materially increasing in demand through 
the energy of Khrman Bros., Horn & Co. and branches, 
in conjunction with t*he sales promotion activities of 
Bayuk Territorial ^fanager F. Xagel. 

E. A, Friedley & Bro., Batavia, X. Y., arc doing a 
nice job on Phillies and Havana Kibbon in their terri- 
tory. 

Students of high schools and colleges, and others 
interested in industrial efficiency, continue to take ad- 
vantage of th«' educational facilities furnished by a 
trip through the Bayuk ])lant. Among rec(Mit visitors 
were the members of the Science Class of the ^Vest 
Philadelphia High School and a group of junior em- 
])loyees of the Bankers Trust Co., of Xew York City. 
The nine young men in the latter group are making a 
tour of the country, visiting industrial establishments. 
The visit to the Bayuk plant was their (mly stop in 
Philadelphia. 

A recent prruninent visitor was Jose])h Kolodny, 
secretary of the X^'ational Association of Tobacco Dis- 
tributors. 



Beniamin Lumlev retuiiied last week from a trip 
through northern Xew York State in the interest ot hi^i 
Garcia y Vega brand, and reports a very successful 
trip. Business was very much im|n-ove<l in every ])oint 
visited l>y Mr. Lumh'v, and an excellent summer season 
is confidently antici])ated. 



Trade Notes 



Kid Xicbols, of Belinda fame, was in to\^Ti last 
weolc and rei»orts business increasing on his brand. 



On and after June 4th, the Philadelphia T'^'ntt of 
the Autokraft Box Corporation will be located at lUll 
Diamond Street. 



John Wagner, of John Wagner & Sons, local dis- 
tributors, sjieiit last week among the trout streams of 
Pennsvlvania and returned after a most enjovable trip 
and a good catch of fish. 



Jack ^ferriam, of M. Bustillo & Mcrriam, was in 
town last week highly i»leased with the improvement in 
business on his l)rand and most optimistic over future 
prospects. 



I. B. AVhite, manager of the cigar department of 
John Wagner and Sons, reports excellent demand on 
Komeo y Julieta cigars with some si/.es constantly 
oversold, in si)ite of the fact that shipments are now 
coming through from Cuba regularly. 



Antonio y Cleopatra cigars are continuing to in- 
crease in favor in this territory and this increase is 
attributed verv largelv to the introduction of the new 
Princess size, which has a punctured head and allow> 
the cigar to be smoked without the usual biting or cut- 
ting olT of the head before lighting. 



Herman Abrams, formerly representing the .Mazer 
Cressman Cigar Comi)any in this territory, is now fac- 
tory representative for ¥1. A. Kline and Co., and i^ 
promoting distribution and sale of the .Medalist brand. 
S'ahn & .McDonnell, local distributors, report a sphn 
did increase in distribution and sab' on this brand 
since the recent a<lvent of two new sizes, which have 
proved popular with discriminating smokeis here. 

Th4 Tobacco World 



Musings of a Cigar Store Indian 



By Chief "Young-Man-Smoke-Cigars" 





IXTRACTS from "The Passing of the Wooden 
Indian," by John L. Morrison, in the Septem- 
ber, 1928, issue of Scribner's Magazine, which 
have aroused much interest because of their 
liistorical associations, are completed in the following 
[.nragraphs: '* Wooden Indians were almost invariably 
. arved out of clear pine and usually from one stick. 
Sometimes extra blocks were glued on, and a Fritz 
I)ecker Indian, owned by (Miarles Seiders, Philadel- 
]»hia, is made entirely of small blocks. 

CJ3 Cj3 CT3 

UK SCCLPTOHS originated designs or copied 
book illustrations or prints. I have never seen 
dujilicates, and only one pair api)roaching close 
resemblance ; thev are seven hundred miles 
apart. I have found no duplicates even among metal 
Indians. The carvers must have exercised much orig- 
inality, or there were so few makers that their work 
was scattered. It was customary for the sculptor to 
paint his creation, but repainting, of course, was be- 
neath him. It seems almost incredible now that there 
were itinerant painters making a business of reapply- 
ing war paint. 

Cj3 CS3 Cj3 

HH DESIGNS fell into four groups: (1) chiefs; 
(2) s(piaws or Pocahontases; i'A) blackamoors 
or Pomi)eys; (4) "white men." The fourth 
class included Sir Walter Haleighs, Uncle 
Sams, Lord Dundrearys, Forty-niners, policemen. 
Punches, Highlanders, and scores of others, including 
cigarette-smoking girls! In the early seventies Cham- 
pagne Charleys were i)opular, tall figures with a Scotch 
l»hysiognomy ; the name came from a ])opular song of 
that day: ^'Champagne Charley is my name," etc. 

• 

Ct3 Ct3 Ct3 

HFSF INDIANS brought various i)rices. 
Snudl Indians sold in New York for $20 to $30. 
It was a low, full-sized brave that did not fetch 
$2.') or more. Canal Street, New York, was a 
mart for bargains in Indians, and the i)revailing ])rice 
$25, but most of these were trade-ins and used chiefs, 
reconditioned and rei)ainted. Proportionately, the 
trade-in feature in the wooden-Indian industry 
was as active as in motor cars today — in fact, 
Leopold Schwager accepted so many trade-ins 
\w finallv found himself, similar to the used car dealer, 
with a iion-unloadable stock when the demand^faded 
awav. Deinnth Indians sold for from $50 to $75 and 
^HK). Edward Hen had them slightly cheaper and his 
Moek was larger. In Haltimore good figures were sold 
at $75. Pompeys brmight $25 to $2(M). Detroit Indians 
M>ld for the biggest prices; Melcher's Indians brought 
him from $150 up— in one instance $700. 

J I lie /, 1934 






DEALER on Flushing Avenue, near Graham 
Avenue, Brooklyn, specialized in little Indians, 
about thirty inches high, for window use. 
Fifty years ago, Morris Hirsh's cigar store, 
65 Fulton Street, Brooklyn, was fronted by the ligure 
of a white man, cigar in mouth, with hands })ressed at 
sides of his head, porous plaster on back. Piominently 
displayed was the legend: "Oh, how hard this cigar 
draws!" People came from all over the United States, 
even from California, to see it and laugh. People went 
far for their amusement in those pre-comic-strip days. 
Not so far away from Hirsh's and in the same street, 
near Clark, Tobacconist Haslani displayed in his w-in- 
dow an Indian made entirely of cigars rolled expressly 
for this purpose, some of them large and some as small 
as one and one-half inches long. It took Haslam months 
to make it and the populace years to talk about it. A 
dealer on Myrtle Avenue, between Pearl and Jay 
Streets, Brooklyn, displayed a coil of tobacco above 
his door after the early European method. 

Cj3 Ctj Ct) 




TALIANS in New York made small-size win- 
dow Indians of plaster and peddled them. 
These were about two feet high, as a rule, and 
no large plaster Indian is reported. 
The metal Indian competed successfully with the 
wooden from about Civil War time. They were attrac- 
tive in design, not easily kidnapped l)y l>oys or by men 
possessed with a low form of humor and ex])ressing 
themselves in their own way, but cost more and were 
virtually non-repairable. Though called "iron" this 
metal was usually cast zinc. A good metal Indian, with 
a genuine custom body, cost from $125 to $200 and 
even $300. 



Ct3 Ct] CX3 

SEMINOLE chief, standing at Samuel Wil- 
lard's, on F Street, was so lifelike that he 
frightened women and children in Washing- 
ton, D. C., forty years ago, whereupon the 
])olice made Willard saw off the barrel of the chief V 
musket. Present ])oli(*e regulations have relegated 
him to I). Ochsmairs back room, gun or no gun. 

Ct3 [J3 Ct] 

RONZE was used in making at least one cigar 
store Indian. It stood at Alles & Fisher's, 
Boston, fr(mi 1874 to 1918, when the building 
was demolished and the figure taken down. It 
is the most pretentious of show-figure Indians, but 
neither the present Alles & Fisher firm nor the Amer- 
ican Tobacco Company, in whose general oflices the 
statue now stands, kn(>ws the name of the man who 
designed or cast this gem, which Henry Wadswoith 
Longfellow often stopped to admire. 







X Erio, Pa., wood carver has made the only 
colli rihiitiou to c'l;u,ar store sculpture in threo 
decades. I'll not sav wooden Indian; it's a 
Malay demon. One novel, one i)lay, one song 
are the ins})irational achievement of the ci*»:ar-store 
Indian in literature, the drama and nnisic, and iie re- 
centlv Hashed in and out of a slapstick movie. 

C?: Cj3 CJ3 

UK ci^ar-store Indian has ])layed his part and 
vanished, lie will not i)r()ha))ly ever he with 
us again in his full size and connnandin<»- pres- 
ence on our sidewalks, l)ut some of these days 
we may have an era of trade symhols, or <>uild em- 
hlems, and the small-size window Indian may return. 

CtJ Ct3 Ct3 

()()K Lo, in wood, metal, or whatnot, has been 
literally and lii»uratively a fii»:ure in the life of 
the world for at least three hundred years. 
He miiiht well lament with that .ii:reat chief of 
the school reader: 'Who is there to s])eak for Lou:anf 
No one.' Possibly it is that haunting lament, linuer- 
ing from school days, that has compelled this word 
in behalf of the wooden Indian— meagre and fragmen- 
tary result of considerable research and outlay for 
urass-root facts about the origin, rise, and fall of the 
cigar-store brave." 





PROPOSED TAX RATES 

HE 4(1 i>er cent, horizontal reduction in the In- 
ternal Kevenue Tax Rates on all tobacco ])rod- 
ucts, including cigars, recently recommended 
l)v the Vinson Subconnnittee, was api)roved 
bv the House Wavs and Means Conunittee at a meet- 
ing held on May 24. The Hill (H. K. 9441) thus ap- 
l)roved by the Ways and Means Connnittee and rec- 
ommended for passage was introduced by Congress- 
man Vinson (chairman of the sul)committee) and ])ro- 
vides for the new tax rates shown in the table below: 

Proposed 

To J Hates 

'- A7) per M. 



Presetit 
Tar Pates 



.$ .7.') i)er 



M, 



i i 



( i 

i ( 



1.20 

:UM) 

S.KI 

l.so 
4.:;2 

.1(»H '* 



4 t 

i i 

4 t 



4 { 

t( 

4 4 
4 4 
4 4 

« 4 

lb. 



Little cigars 

* Cigars : 

Class A 2.00 

Class H 3.00 

Class C .J.OO 

Class I) 10..')0 

dass E 13.50 

( 'igarettes o.tM) 

•'Large cigarettes .... 7.20 

Mfd. tobacc(» ^' snutT. . . .18 " lb. 

*The i)resent classification of cigars would re- 
main unchanged. 

**Exce]»t that if more than 0% inches in length 
they shall be taxable at tlie ordinary cigarette tax rate, 
counting each 2% inch (or fraction thereof) of the 
length of <'ach as one cigarette. 

It is to be noted that the new tax rates provided 
for in this bill "shall apjily only with respect to arti- 
cles sold or removed for consumption or sale after SO 
(Jatfs after the date (tf the enaetnirvt of this Act/' 

The Connnit tee's r<'i)ort will probably be sub- 
mitted to the House for action thereon earlv this week. 




FINAL CONTRACT DATE SET 

UK final date for acceptance of tobacco acre 
age adjustment contracts for filler and binder 
ty])es of cigar-leaf tobacco grown in the Wis- 
consin-Minnesota, Ohio- Indiana, Pennsyl- 
vania-New York, and New England areas, has been 
set at June 15, it was announced today by the tobacco 
section of the Agricultural Adjustment Administra- 
tion. 

Producers who oi)erated under cigar-leaf con- 
tracts in these producing districts last year also have 
until June 15 to execute riders which carry the oi)tions 
contained in the 1934 contract, giving ])roducers the 
choice of reducing acreage by either 33 1/3 per cent., 
50 per cent., or 100 per cent., of their base acreage. 

Officials also announced that ])roducers have until 
June 15 to select or change a selection already made 
in the o})tion as to the projwrtion of base acreage to 
be retired from production under the contract. 

Some cigar manufacturers have indicated that in 
their judgment ])roducers in jmsition to grow tobacco 
of the most desirable (pialities for cigar ])urposes will 
find it to their advantage to acce])t the o])tions pro- 
viding for the smaller reduction rather than the op- 
tions providing for the larger reductions. 

Bayuk Cigars, Inc., of Philadel])hia, and the Gen- 
eral Cigar Com])any of New Yoik, have advised the 
tobacco section that their stocks of domestic filler to- 
baccos are not excessive, and that very little tobacco 
suited to their recpiirements is available for purchase. 
Under the conditions, these firms believe, a crop some- 
what larger than that now indicated, if of good qual- 
ity, would bring ])roducers higher prices than have 
prevailed in recent years. 

Officials of the tobacco section pointed out that 
although total stocks of cigar types are still large, 
it may be that stocks of some giades have been re- 
duced until they are not excessive. However, it is sug- 
gested that each grower consider carefully the demand 
for the quality of tobacco which he produces in order 
to obtain the greatest possible advantage from the 
flexible j)rovisions of the 1{>34 adjustment contract. 

Because of the changes that may be made in the 
contracts between now and June 15, tabulations of 
the contracts which are now in county and State offices 
will not be made until after the close of the sign-ui) 
l>eriod. 



SALESBSEN ORGANIZE IN D. C. 

Headed by (J rand President Abe Brown, the execu- 
tive committee of the National Board of Tobacco Sales- 
men's Association will organize a Washington, I). (^. 
Tobacco Salesmen's Association, Saturday, June 2, at 
3 \\ M. Organization will be hehl at the Hotel llamil 
ton. Fourteenth and K Streets Northwest. 

Post])onenient from May 2()th was necessary owing 
to the N. B. T. S. A. members wanting to attend the 
testimonial dinner to William A. Hollingswortli, presi 
dent of the Retail Tobacco Dealers of America, Inc. 

Resolutions passed by the National Board urge all 
numufacturers, distributors, jobbers and salesmen to 
go after Father 'h Day business. The occasion lends 
ftself admirably to the promotion of tobacco sales be 
it cigars, cigarettes or smoking tobacco. The industry 
is urged to feature Father's Day in advertising, win- 
dow poster.s and store counter disjilays. 

Tht Tobacco World 




. . . It's irritating 
and it means... 
jangled nerves! 

Yes, it's irritating to listen to that 
constant, tuneless humming — and 
more than that, the humming is a sign 
of jangled nerves. 

If you notice any of those tell- 
tale nervous habits in yourself — if 
you whistle through your teeth — 
juggle your keys — drum on the table 
— then it's time to start taking care 
of yourself. 

Get enough sleep >- fresh air — 
recreation — and watch your smok- 
ing . . . Remember, you can smoke 
as many Camels as you want Their 
costlier tobaccos never jangle your 
nerves. 



HAVE FUN! 

«S^^/or FREE Game Book 



New — illustrated book of 20 ways to 
test nerves. Fascinat- 
ing! Amazing! "Show 
up" your friends. See 
if you have healthy 
nerves. Send fronts 
from 2 packages of 
Camels with order- 
blank below. . . Free 
book is sent postpaid. 







CUP AND MAIL TODAY! 

R. J. Reynolds Tobacco Company 
Dept. 112-C, Winston-Salem. If. C. 

I encloee fronts from 2 packs of Camela. 
Send me book of nerve tesU postpaid. 



Name. 



(PRIHT NAME) 



Strt€t. 



City StaU 

Offer .xplrea D*c«mb«r 31, 1934 



I 




COSTLIER TOBACCOS 

Camels are made trom finer, MORE EXPENSIVE 
TOBACCOS than any other popular brand of cigarettes! 



SMOKE AS MANY AS YOU WANT... 
THEY NEVER GET ON YOUR NERVES I 



June I, igs4 



J' 
m 



I 






U. S. Cigars Up Nearly 24 Millions in April 




HE followiiiu' eomparativo data of tax-paid 
products, indicated by the monthly sales of 
stamps, are issued by the Bureau. (Figures 
for A])ril, IJKU, are subject to revision until 



published in the annual report): 



— Avril — 



Prftffuffs 
Cii'ars (large) : 

Class A No. 

Class B No. 

dass C No. 

Class D No. 

Class E No. 

-L oiai 



nf.'M 



2{K],m)0,515 
;i:?2t),497 

44,(;7i),7:^o 

3,121,()50 
278,339 



277,187,420 

2,477,513 

38,425,990 

2,866,535 

249,115 



345,0t;6,731 321,206,573 



(l-ars (small) No. 17,629,400 10,896,826 

Ciiiarettes (large) ...No. 11,817,000 196,811 

Cii-arettes (small) .. No. 9,293,630,590 7,973,021,190 

SnutT, mfd Lbs. 3,1{)8,039 3,440,392 

Tobacco, mfd Lbs. 24,062,007 25,407,025 

Tax-paid ])roducts from Puerto Rico (not included 
in above statement) were as follows: 

— April — 



/' 



Cigars (large) : 

Class A No. 

Class B No. 

Class C No. 

Total 



19:i4 



193S 



6,206,400 

208,5(K) 

28,750 


4,082,650 

164,7(K) 

17,000 


6,443,(>50 


4,264,350 


290,0(K) 
100,000 
400,000 


50(),0(K) 
20,(K)0 
65,000 



Cigars (small) No. 

Cigarettes (large) ...No. 
Cigarettes (small) ..No. 

Tax-i)aid i)roducts from the Fhilijijiines (not in- 
cluded in above statement) were as follows: 

— April — 



Proflucts 




VJ3i 


1933 


Cigars (large) : 








Class A 


. .No. 


21,208,510 


8,442,275 


Class H 


. . No. 


1(5,843 


4,970 


Class C 


..No. 


9,476 


13,476 


Class J) 


. . No. 


150 


2CK) 


dass E 


. . No. 


120 


• • • 


Total 


21,235,1)99 


8,460,921 




. . No. 


Cigarettes (large) , 




l,fKM) 


Cigarettes (small) . 


. . No. 


344.100 


83,(H)0 


Tobacco, mfd 


. .Lbs. 


5 


14 



STATEMENT OF COLLECTIONS FOR APRIL 



Sources of Revenue 1934 

Cigars . .' $ 913,396.20 

Cigarettes 27,968,190.33 

SinitT 575,647.10 

Tol)acco, cliwg., smkg.. . 4,331,337.09 
Cigarette papers and 

tubes 76,113.07 

Miscellaneous, relating to 

tobacco — 8,319.45 



1933 

'^ 812,923.16 

23,921,084.01 

619,270.59 

4,574,056.32 

65,111.68 

241.00 



April Cigar Withdrawals 1920 to 1932 Inclusive 



April, 1920 
1921 
1922 
1 {)23 
1924 
1925 
1926 



. 663,577,579 
.548,103,503 
.501,393,544 

%Q'7 'I'n ^l'^'> 

.501,422,160 
.493,775,432 
.509,132,588 



April, 1927 . 

1928 . 

1929 . 

1930 . 

1931 . 

1932 . 



. 475,970,589 
.459,021,565 
.550,912,261 
. 469.968,598 
.459,981,900 
.349,953,161 



Processing Tax Returns 



Detail of collections from ])rocessing and related 
taxes proclaimed l)y the Secretary of Agriculture and 
under authority of the Agricultural Adjustment Act 
(Public— No. 10— 73d Congress), approved Mav 12, 
1!)33. 

Total from Juh/ 
Moi/fh of 1933 (Fiscal 
Commi)fHttf April 1931 year 1931) 

T()l)acco, tax efTective Oc- 
tober 1, 1933): 

Processing tax J|^2,l 38,1 10.36 jf^l 1,850,487.57 

Import c o m i)ensating 

taxes 21,037.52 

Floor tax, other than 

retail dealers 3,323.21 

Floor !ax, retail deal- 
ers 1,722.06 



131,564.24 

1,804,785.89 

241,637.61 



Total, tobacco ....$2,164,193.15 $14,028,475.31 



GEORGE AND GRACIE AT THE FAIR 

George Burns and Oracie Allen made a special trip 
to Chicago to take part in a broadcast at the openiim 
of the White Owl exhibit in the WorkPs Fair, Mav 26th. 
The program was on the WABC-(\)lumbia network 
from 6:15 to 6:30 P. M., KDST, and the musical por- 
tion, supplied by Guy Lombardo and his Koyal Cana- 
dians, originated in Pittsburgh, where the band was 
filling a vaudeville engagement. 

The opening ceremonies were lirief, but i?npressive. 
Gracie dropi)ed a bale of tobacco on (Jeorge's foot, 
(ieorge shouted, *'Ouch!'\ which was tbe cue for the 
engineer to turn on the controls for the broadcast. This 
is the second season George and (Jracie have opened 
the White Owl exhibit. 



m 



POSTERS AND FATHER'S DAY BUTTONS 

Abe Brown, manager of the Newark Brancb ot 
Bayuk Cigars, Inc., has announced the release of a 
state-wide outdoor biin)oard campaiLni featuring 
Bayuk 's Phillies on twenty-four sheet posters, lie 
adds tbat Phillies are on display and sale wherever 
cigars are sold, be it road stands, department stores, 
clubs, hotels or cigar stores. 

The sales force in co-operation is putting up win- 
dow posters, screen door signs and outdoor all-weather 
plaeard.s. 

The salesmen are giving to those retailers that will 
make the effort a large red coat-lapel button liearing 
the inscription, ''How About (^igars for Father's 
Day.'' In keeping with Bayuk's desire to promote the 
sale of cigars in general there is no Bayuk advertising 
on the button. 

Tk€ Tobacco World 




it's toasted" 



LUCKIES ARE ALL-WAYS KIND TO YOUR THROAT 



On^ the Center Leaves^tAcse are the Mildest Leaves f^^h ^ Ttuy ^miiti P^tti^ 



^"•"■^ Oi^f^«.IW<TW»iiiiii lni 't%*««*» 




:zL 



June J, 1934 



tt 



ti 




News From Congress 



-. 'AND 

Federal 
Departments 




rPKOVAL of i)roposals for a 40 per cent, re- 
(liK'tioii in tol)acco taxes, sou»i:ht by the niaiiii- 
faetiiiers of lO-eeiit ciufarettes during- consid- 
eration of the new I'evenue hill, was voted by 
the House Ways and Means (V^niniittee May 24th. A 
result of the cut, if ajiproved by (\)nnress, would be a 
reduction in the retail ]>rices of cigarettes, jmssibly 
with the now lo-cent brands coming down to 10 cents 
and the 10-cent types being sold at two i)ackages for 15 
cents. 

Adoption of the proposal would mean a reduction 
in tobacco tax collections of $75,000,000 a year to begin 
with, although ])roi)onents of the move claim that in- 
creased consumi)tion would take up much of this 
amounf. 

The legislation has the backing of the tobacco 
growers, who see in increased consumption a ])ossible 
scra]>])ing of the entire tobacco acreage reduction pro- 
gram and the raising of tobacco prices up to ])arity. 

The committee's favorable report was made in the 
face of the President's refusal to connnit himself on 
the question, although it had been indicated in White 
House circles that both he and the Secretary of the 
Treasury felt it would result ill a considerable loss of 
revenue. 

Although the ipies^tion of a cut in the tobacco taxes 
was broached while the VXU revenue bill was under con- 
sideration, neither the House nor Senate took any 
action on the matter. Following the reporting of the 
bill, tlie House Ways and Means Committee turned the 
(juestion over to a subconnnittee for consideration, and 
that group some weeks ago made a report favoring tax 
reduction. 

Announcing the decision of the full connnittee, 
Reiiresentative Robert L. Doughton (Dem.) of North 
Carolina, chairman, declared that *Mlie subconnnittee 
heard representatives of all major cigarette-i)roducing 
corporations promise that if the tax reduction is en- 
acted the entire benefit will accrue to tlie consumer, 
with no additional profit to the producer. 

"AVe believe that these firms realize the serious- 
ness of the situation and will carry out their promises 
in order to benefit tobacco growers." 

The action of the connnittee, while advancing the 
tax-reduction program, does not necessarilv imnlv that 



anything will come of the movement tin 



s session, 



Kf- 



forts are being made to adjourn Congress by .June 9th, 
and the matter must yet be passed ui)on by the House 
and then l)y the Senate, so that if any d(»termined oppo- 
sition was expressed in the lattor body it might result in 
delaying the measure until too late for action. 

Proponents of the bill, however, express confidence 
that little objection will ])e raised in either House or 
Senate and are confident that it can be passed. 





From our jVashinotow Bureau 62ZAl6ei Bwlowg 





PPOIXTMEXT of Professor Claudius T. Mur- 
chison of the Cniversity of North Carolina as 
director of the Bureau of Foreign and Domes- 
tic (V)mmerce of the l)ei)artment of Connnerce 
was announced May L>4th l)y President Roosevelt. 
Murchison was named in place of Professor Willard L. 
Thorp of Amherst College, Mass., whose nominati(m 
with withdrawn recently when Senate leaders advised 
the J*resident he could not be confirmed. 

While Thorp was ostensibly rejected on the ground 
that he had once been registered as a Republican and 
had had but little business experience, the major basis 
of the opposition was a fight of political factions in the 
department of many months' standing. 

Cj3 Ct] Cj3 

XACTMENT l)efore the end of the session of 
legislation providing for the establishment of 
''free ])orts" has been made jiossible l)y the 
action of the House Rules Connnittee in expe- 
diting consideration of the l)ill sjionsored by Repre- 
sentative Celler of New York.^ Similar legislidion has 
already l^een passed by the Seiiate. 

The bill establishes free port areas where im])orted 
goods can come in for rehandling and re-export without 
])ayment of duty or storage in bonded warehouses. In 
these ports also domestic an<l foreign materials and 
products could be combined into connnodities for ex- 
jMirt. Briefly, every sort of operation necessary to the 
l)roduction from foreign niaterials of merchandise for 
the foreign track', excej»t actual manufacturing, could 
be carried on in the free zones. 

Cj3 Ct] Cj3 

THOROrOH investigation by the Senate 
Finance Committee of the possibilities of im- 
posing a Federal sales tax on all products 
except foodstuffs is proposed in a resolution 
introduced in the Senate last month by Seiuitor Bar- 
bour (»f New Jersey. In introducing his measure, the 
Senator indicated his intention of pressing for a gen- 
eral sales tax, part of the ?<'eeii)ts from whieh would 
be turned over t(» States which do not alrea<ly imjtose 
such taxes themselves. 

The invest igatir)n pioposcd f<jr the Finance (Nun- 
mittee would cover the methods to be used in collecting 
the tax, the method of ascertaining the sales prices of 
articles subject to the levy, the definition of foodstuffs 
to be exempted, and the portion of the revemies to be 
alloc4ited to the States. 

TA# Tobacco WorU 




Cig*"" 



s are 



^^,pIea.nraD.e 
,od eoonotuical 



/OLUME 




BAYUK BULLETIN 




wt DO OUR nun 



JUNE 1, 1934 



NUMBER 9 



pHULOF AX FRONT door locked? try 




iT!he lietailer^s Friend) 

SAYS 



"Do retailers really 
appreciate the service 
as rendered to them by 
a jobber and what 
would they do were it 
not for this jobbing 
service?" asks O. C. L. 
Not a ba'l question to ponder over. 

"When a manufacturer's salesman 
I accompanies a jobber's salesman to 
assist in promoting the sale of a prod- 
uct who should have the lead in the 
I sales talk to the prospective customer? 

Durinjr every single minute of last 
year (Sundays and holidays included) 
a certain jobber sold 120 cigars of a 
certain brand— zowie, 120 cigars every 
minute . . . 7200 cigars every smgle 
hour throughout every day of the 
year! If the cigars sold were made 
into one gigantic cigar it would 
measure .)555 miles long! Figured by 
the minutes that it takes an average 
man to smoke a single standard-sized 
cigar, how long would it take a man 
to smoke this cigar? 



THE SERVICE ENTRANCE 

ThaCs What Salesman Florsheimer Did 



D. 0. C. sends this in: "Talking 
about calls as made by cigar and 
tobacco jobbers' salesmen, my wife 
told me that her milk-man told her 
that he served 345 customers each day 
-do you believe it?" Gad, if that 
milk-man does serve 345 customers 
every day, when did he find the time 
to tell your wife? At that, it IS a 
few more customers than we cigar 
salesmen contact each day, isn't it? 



As a salesman, are you a SAPO- 
DILLA? No, it doesn't mean what we 
might think and besides a Salesman 
could not be a Sapodilla if he wanted 
to. . . . BUT don't be a QUIUNUNC 
Boyoboy, it's bad to be a QUIDNUNC! 



It was the swankiest of swank 
hotels that Joseph Florsheimer, 
Philadelphia cigar salesman, 
picked as a good outlet for his 
brand. 

Now it happened that Joe's 
brand retailed for five cents and 
the boss of the cigar stand 
couldn't see his high hat trade 
smoking five cent cigars. 

"But," protested Joe, "this is 
a good cigar. It's smoked by 
men who can afford to pay any 
price. I'll bet a lot of your own 
customers smoke it. Let me put 
a box in the case and prove it." 
"Nothing doing," replied the 
man behind the Italian marble 
cigar counter. "My customers 
just barely condescend to speak 
to a ten-cent straight." 

Well that looked like that. But 
it wasn't. Finding the front door 
banged in his face, Joe tried out 
the service entrance. He started 
a little quiet sampling campaign 
right there in the hotel. Not 
among the guests, oh dear no. 
But the doorman got a few 
cigars, compliments of Joe Flor- 
sheimer. So did some of the 
elevator boys, the head waiter, 
one of the assistant managers. 

Before many days the hotel 
cigar stand had sufficient calls 
from members of the staff to 
justify the cautious purchase of 



a box of fifty. And the box of 
fifty hadn't been in the case very 
long until it was showing signs 
of complete exhaustion. Joe had 
been right. The guests of this 
very high hat hostelry did know 
his brand and Uke it. That in- 
itial box of fifty has blossomed 
into a frequently repeated 250 
order. 

There's a double-barrel moral 
to this story. No. 1 — A good 
cigar knows no class distinc- 
tions. It can make its way into 
any society provided it's given 
the right sort of start. No. 2 — 
To a good salesman, a prospect's 
"No" is no more final than a 
woman's. 



^TOMORROW'S SUNDAY" 
BOOSTS SATURDAY SALES 

What is Saturday to you, Mr. Re- 
tailer? Merely the day before your 
day of rest — or a good opportunity 
to pound out some nice extra sales 
volume on your cash register? 

News-sleuth G. F. Branzell reports 
a neat little stunt used in a Wash- 
ington, D. C, smoke shop to boost 
week-end sales. 

When a customer enters the store 
on a Saturday and asks for his pet 
cigar, the clerk places the box on the 
case and at the same time produces 
a five-pack with the remark: "Tomor- 
row's Sunday." 

That fact is usually no news to the 
customer, but it does conjure up in 
his mind the terrors of a cigarless 
Sunday — and the result is some 
mighty satisfactory five-pack sales. 



$5.00 REWARD 

There are millions of smokers 
who have never learned that a 
cigar is the meet pleasurable form 
in which to enjoy tobacco. How 
would you go about converting 
some of these men to cigars? 

There are millions of men who 
enjoy a cigar once in a while, 
who ought to be regular smokers. 
What can be done about them? 

Let's have your idea for boost- 
ing cigars. Send it to Phulofax, 
care Bayuk Cigars, Inc., 9th 
Street and Columbia Avenue, 
Philadelphia, Pa. Five dollars will 
be paid for every idea published. 



Be you a jobber, retailer or sales- 
man, lots of learning obtainable from 
magazines, trade papers, etc . . . and 
at little cost, too. 



Are y«u a button-wearing C. B. A. 
member or a cigar-consumer getting 
C. B. A. member? U02B both! 

"Arc there two kinds of cigars—- 
those that sell and those that don't ? 
asks F. O. B.— P. M. P. doesn't agree 
-he says — "Yes, there are two kinds 
of cigars— those that are licensed to 
sell and those that a SALESMAN 
can make sell bigger." 
— — 

This retailer had a store close to a 
large railroad.station ... he checked 
your grip gratis but when it was 
called for, invariably a pleasing sale 
of cigaiij was made. 




c^^>^ 



D.B.L 



•'*«*»tai*.,/ ^$h B4Yim. aCARS, INC., PhUa, 
^oipttkt-.Makmn of J^mm ei§an timem 1897 




C B A 



(Cigar Boosters Association) 
is working for you. Are 
you working for it? Join 
up now and do your share. 



HERE'S HEADWORK 

Fred J. Hillman, who covers a New 
York State territory for a well known 
brand of cigars, works a very clever 
"point-of-sales" advertising scheme. 

"A great many dealers out my way 
have newspaper stands outside their 
stores," writes Mr. Hillman. "In my 
car I always carry some empty cigar 
boxes (my own brand, of course). 
Whenever I come to one of these news 
stands I leave one of the boxes for 
customers to drop their pennies in. 

"I've never had a kick from a dealer 
— and next to a good poster in the 
window, I don't know any better way 
of reminding the passer-by that he 
can get my cigars inside." 



IS THE ^^SOTH" MARKED 
ON YOUR CALENDAR? 

Memorial Day ushers in another 
season of "hay making" days for the 
progressive cigar dealer. Close on its 
heels follow Father's Day and the 
Fourth of July, with Labor Day 
faintly discernible on the horizon. 

Now's the time to hie yourself 
around to the nearest Legion Post 
to borrow a supply of tin hats and 
other war-time trophies for tiniely 
window and store decorations. And 
this evening would be an excellent 
time to sit down with yourself and 
think up a few snappy display cards, 
suggesting a box of cigars for the 
Memorial Day outing. 

And while you are thinking, think 
of all the week-end auto trips your 
customers are going to take this sum- 
mer—and how you can go about sug- 
gesting that they take along a good 
supply of cigars. 



WHAT THE CIGAR BUSINESS NEEDS-Lots of C, B. A. Members 
With Good, Hard-working Consciences. 



BATUK BRANDS BUILD BUSINESS 

Bayuk Philadelphia Perfect© 

■^ (BAYUK "prflLLIES") 

Havana Ribbon 
Mapacuba 

Charles Thomson 
Prince Hamlet 



. 



Report on the Kerr Bill 




HE HILL for the eoiiliol of tobacco pmdnetion, 
geiK'ially known as the Ken- Bill, has been re- 
introduceil in a revised form (IL R. !)(jiH)) and 
reported ont for i)assat;e by the House Agri- 
cultuial Comniittee. A siniilai- bill has also been inlio- 
duced in the Senate by the Chairman of the Agricul- 
tural Conmiittee as Senate Hill Xo. IkuO. 

To quote fi'om the House Connnit tee's rej)ort : 

"This Bill has for its jiurpose the protection of the 
bona tide tobacco growers who have entered into a con- 
tract with the Agricultural J)ei»artment to reduce their 
acreage and poundage allotment of tol)acco to be grown 
by them for the crop year of l!i:U. . . . These contract 
growers who have enthusiastically entered into this 
program with the Agricultural Hepartment are de- 
manding that they be protected from all non-contiact 
groweis who declined to reduce their acreage or pound- 
age aikl who can by their unwillingness to coopi'rate 
with their fellow fainiers and the Agricultural Depart- 
ment wreck the program and defeat the purposes of the 
law. . . . 

*' . . . Therefore, this 15111 proposes to i)ut a sales 
tax of from 2.3 i)er cent, to 33 1,.') per cent, on all to- 
bacco juoduced by contracting i)arties in excess of that 
allotted to them by the Agricultural l)ei)artnient and 
on all tobacco produced and otfered for sale by those 
who did not enter into contract to reduce iheir 
crop. . . . 

** . . .In brief, the levy seeks to prevent the man 
on the outside from unduly profit ing by his neighbor's 
reduction and by his neighbor's sincere endeavor to 
enter into a cooperative agreement by which fair prices 
will l>e obtainecl. . . " 



»> 



TAXES 

Again qiiofin*? from the Honso roTnmit tee's report, 
tlie measure provides tor: 

'' . . . a sales tax on all types of tobacco which 
come under the operation of this act, nf not /^.v.s- than 26 
l)rr rrut. or wore than :j'i 1 .7 pt-r cent, nf the pi he for 
whicli ,^ai(l tobacco is nftld, which was grown and 
marketed l>y non-contracting tobacco growers who do 
not participate in the adjustment program of the Agri- 
cultural Administration. This tax applies to all to- 
bacco harvested in the crop ipar of 1934-35 except 
Maryland tobacm, Virffinia snn cured tobacco, and 
ayar-leaf tobat < n, and tobacco yr<iun bij (frowcrs nJio 
produce less than 2,000 pounds of tolnno, a crop 
year. ..." 

It is tr) be noted that no tax is imposed under this 
bdl "u])on tobacco harvested prioi- to the crop vear 
l!)34-iy35." 

Under the general scheme of this measure, the tax 
is levied on all tobacco sold, excejiting the types ex- 
empted. But farmers cooperating in the Voluntary 
Tobacco l*ioduction Progiam would receive non-trans- 
ferable tax payment warrants (without })aying there- 
f<»r) for the jioundage allotted them. These warrants 
wouhl in turn be accejjted in payment of the tax. Xon- 
coojM'rators having no warrants, or farmers selling 
more than their allotted share (for the excess of which 
they would have no wariants) would, of course, have 
to pay the tax in cash. 

14 



The bill requires all persons having information 
in respect to tobacco produced or sold to disclose said 
information to the Comnussioner of Internal Revenue. 

REGARDING LATER CROPS 

It is to be noted that the bill detinitely imposes 
the tax on the 11)34-11)3.') crop. As regards later crops, 
the measure contains the following provision: 

"... Thereafter whenever the Secretary of Agri- 
cultuie determines that the persons who own, rent, 
share crop, or control two-thirds of the land custo- 
marily engaged in the production of any particular 
type of tobacco favor the levy of the tax thereon and 
that the imposition of the tax thereon is necessary for 
the orderly marketing of such tobacco in interstate 
and foreign commerce and to effectuate the declared 
policy of this Act, he shall proclaim such determination 
at least sixty days prior to the next succeeding crop 
year, and the tax shall thereafter apply to tobacco of 
such type harvested during the crop year next follow- 
ing the date of such proclamation," 

CIGAR TOBACCO 

Here again we quote from the report of the House 
Committee, to wit: 

"Section 15 provides that the Secretary of Agri- 
culture may establish quotas for the importation of any 
ciyar-lcaf types of tobacco into continental United 
States whicli may come in competition with such type 
^/ tobacco to which the tax herein provided is applica 
ble. These quotas to be allotted to the imi)orters of 
such tobacco by the Secretary of Agriculture — he hav- 
ing due regard for the resi)ective amounts of tobacco 
inq)orted within the crop years 1932-33 and 11)33-34 by 
said importers. 

''Section 16 authorizes the Secretary of Agricul- 
ture tn fix an import-tax rate on cigar-leaf tttbacco 
which exceeds the quota allotted to importers. This is 
<lone to further jirotect the American growers of cigar- 
leaf tobacco and nuike it inqmssible for foreign iin 
porters to take advantage of domestic reduction of 
this type of tobacco." 

Attention is also directed to tlie following pro- 
vision contained in Section 16 of the bill: 

'* . . .As used in this and the preceding section 
'cigar-leaf types of tobacco' shall include cigars, which 
for the purposes of the (juotas, allotments, and import 
tax ]>rovided foi- by said sections shall be translated 
into terms of raw cigar-leaf tobacco of the respective 
types frcmi which such cigars are produced, ])ursuant 
to conversion factors established and proclaimed by the 
Secretary of Agriculture." 

Section 3 (c) of the bill reads: 

**The provisions of this Act shall be applicable to 
the I'nited States and its possessions, except the 
Philippin(» Islands, the Virgin Islands, American 
Samoa, the Canal Zone, and the island of (luam." 



The main office, showroom and ston* of T. Miller 
and Son, importers and distributors of cigars and to 
l>acco products, is now located in the (Jreeley Arcad«' 
Building, 128 W. Thirty-first Street, running through 
to 127 W. Thirtieth Street. Tlie store operates on a 
''cash-and-carry" basis. 




News from Congress 

(Continued from page 12) 



ACKETEERING" in equity receiverships 
and bankruptcy proceedings has cost the 
country $4,0()0,00( ),()()() during the last five 
years, according to a report just prei)ared by 
ji House judiciary subcommittee embodying the results 
r)i" investigations into the situation in C'hicago, on the 
1 ;sis of which general legislative clumges in bank- 
1 i])tcy huvs were reconnnended. 

Going into detail regarding the conditions dis- 
posed by its study, the subcommittee reported that 
"the outstanding fact wiiich in our opinion justifies the 
-,>verest criticism of the courts in the northern district 
r Illinois is the apparent utter disregard by judges of 
llie rights of property of creditors in the matters of the 
allowance fees to attorneys and receivers and the vari- 
ous items of expense." 

The House group was one of several which during 
I he ])ast year have studied the bankru])tcy situation. 
l!s finding that ai)proximately $8( )(),()()( ),()()( ) a year has 
been lost to creditors during the past five years is 
borne out bv other studies Avhich have been nuide, but 
it is exi)lai"ned that the loss during the depression 
period has been considerably in excess of nornud be- 
cause of the unprecedented conditions which have pre- 
\ailed. 



e 




HEARING ON FLUE-CURED TAX 

PTBLK' hearing was concluded on ^lay 24, 
at which evidence in support of a reduction 
in the rate of the i)rocessing tax on tiue-cured 
tobacco used in the manufacture of ]))ug chew- 
ing tobacco and twist, was introduced. The hearing 
was hehl in the Internal Kevenue Building. Five wit- 
nesses, H. B. Taylor, of the Taylor Brothers Tobacco 
(N)mi)anv, E. J.*I)avis, tobacco warehouseman, J. V. 
Trotnanl, of Winston-Salem, N. (\, and J. E. Howard, 
of the Sparrow-CJravelv Tobacco (^ompany, Martins- 
burg, West Virginia, and J. B. O'Brien, of the Ryan- 
Ihunpton Tobacco Gompany, Louisville, gave testi- 
mony in support of the proposed change in the tax rate. 
'Evidence was presented to the effect that plug 
.hewing tobacco and twist, nu\de from flue-cured to- 
bacco, were of such low value as com])ared with the 
quant'itv of tobacco used in their manufacture that 
the present tax is curtailing the use of flue-cured to- 
bacco in these products, and is acting to cause an 
accumulation of surplus stocks. 

Hepresentatives of the ])rocessors asked that the 
lax reduction be made retroactive to October 1, 1}>33, 
and that the i)rocessing tax on all types of tobacco 
usimI in the numufacture of plug and twist be levied 
at the same rate. The rate requested was l'_.cents 
per pound. There were no witnesses in oppositum to 
the reduction in the tax rate. 



(' 



Th€ Tobacco World 



The New Prince Ihnnlet cigar, product of Bayuk 
rigars, Inc., ami retailing at ten cents and up, has 
received splendid co-operation from retaders m tins 
<ity and is well disi)layed in all the prominent cigar 
^loVes The splendid volume of sales obtained is an 
.xcelient barometer recording the trend ot business 
< (editions. 

June t. 1934 



Ki 



ILLIAN RUSSELL 

2 

for 

5c 




CIGARS 




CIGAR 



P. LORILLARD GO'S 

Quality 

2 ^^'^ 5^ 

Cigars 

Meeting the public's demand 
for quality cigars 
moderately priced 



NEW 

CURRENCY 

CIGARS 




2 

for 

5c 



Our Other Popular 2 for 5f Cigars 
JAMES G. BLAINE • • POSTMASTER 
LA FRAOSA • SARONA • WAR EAGLE 



TOBACCO TRADE ORGANIZATIONS 

TOBACCO MERCHANTS ASSOCIATION <^*fjSfjj"%s5 
OF UNITED STATES ^^^J^^ 

JESSE A. BLOCH. Wheeling. VV. Va. vv'Pr^^lK 

jrULS LICHTENSTTEIN. New York, N. Y ^.^ • vY'^p^^^'f.t^* 

WILLIAM BEST. New York. N. Y. ...^... Chairman Executive Comm.ttee 

MAJ. GEORGE VV. HILL. New York. N.Y V « rr"£^^ 

(iEORGE H. HUMMELL. New York, N. Y V ce-PresS 

H. H. SHELTON. WashinRton D C V cc-Pres deSt 

WILLIAM T. REED. Richmond Va Vice-President 

HARVEY L. HIRST. Philadelphia, Pa TJclsurSr 

cillRfE^'s dShkTnd. N;w'^Yo;k;N: -^^^ 

^ Headquarters. 541 Madison Ave., New York City 

RETAIL TOBACCO DEALERS OF AMERICA, INC. 

JAMES C. THOMPSON. Chicago. Ill Ireasurer 

ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS 

JOHN H. DUYS. New York City Fi;st' Vice-pJesidenl 

?!'VKiL^E!N'i^rwk'^v:::;:::::::::::::::::::::-^ 

Ekl'lAMUEtk^Ner YoJIc' CUy" Secretary -Treasurer 

NATIONAL BOARD OF TOBACCO SALESMEN'S 

ASSOCIATIONS 

ABE BROWN. 180 Grumman Ave. Newark. N. J 'First' Vice-Plresidenl 

''H}^^'^J'i^n^l''T;.nZ N J- • ;;:::::..:::.::::.secind vldpresident 

IRVEN M. MOSS. Trenton. N. J Secretary 

A. STERNBERG. Newark. N. J "^ 

RETAIL CIGAR STORE ASSOCIATION OF PHILADELPHIA 

* ^.„^^».Tc President 

ITmuFl MAGID?^^! N.MeVvine S;.VPhi.ade,pW^ Secretary 

THE NATIONAL ASSOCIATIONS OF TOBACCO 
DISTRIBUTORS. INC. 

„ „ , . .,, President 

P ASRURY DAVIS, Baltimore, Md ;;•• I" "iVv Secretary 

jVeMI K0i!oDNY. 200 p/th Ave., New York. N. Y. ■■•;-;--;;;;:;;;|^^^^^^^ 
GEO. B. SCRAMBLING, Cleveland. Ohio 

UNITED STATES TOBACCO DISTRIBUTORS ASSOCIATION 

{JSSiAn'h^FE." :3bl 'Fox ihiUding.- Phiiad^^^^^ 

t5 



p 




John Wagner & Sons are meeting- with unusual 
success in promoting a new size of Medal of Honor 
cigars, retailing at lifteen cents, and under the front 
mark of '*fancv tales." 



II. H. Kynott, advertising counsel for, among 
others, the G. II. P. Cigar Co., has been re-elected presi- 
dent of the Poor Richard Club. He is the first presi- 
dent to be elected for three successive terms, since the 
early days of the club. 



George Stociving, of Araiigo y Arango, was a visi- 
tor in towTi last week, and reports business on his Don 
Sebastian brand showing a fine increase over the same 
period last year. Improvement in business conditions 
is particularly notic<^able in the Class C and D mei*- 
chandise. Mr. Stocking was enroute to factory head- 
quarters. 




SPREADERS OF OPTIMISM 

LATED over the continued comeback of ciffar 
smoking, as reflected in the figures released 
for A]nil, Frank P. Will, executive vice-presi- 
dent of G. H. P. Cigar Co., and Dave A. Jenks, 
assistant sales manager, returned from tlieir recent 
optimism-spreading tour, full of confidence that their 
faith in the future of the business will be justified in 
a maimer to silence the cynics. Accompanied by 
H. H. Kvnett, advertising counsel for the comj)any, 
they addressed the Buffalo and Rochester sales forces 
of Kearney-Lehmann Co. on the 18th, and on the follow- 
ing day the sales organization of the X. Rice Cigar Co. 
in the William Penn Hotel, Pittsburgh. 

Present and future promotion plans for El Pro- 
ducto and La Azora w^ere discussed in detail. G. H. P. 
has formulated a proirram to take the fullest advantage 
of the smoking public's return to the cigar as a favorite 
form of relaxation. 



E. J. Myers and IMoe Gordon report that condi- 
tions look favorable for a nmch better season at iVtlan- 
tic City, and they are well pleased with the prospects 
there for El Producto and La Azora. 

The company has recently been in receipt of let- 
ters from distributors all over the country who are 
l»hinning to attend the Distributors' Convention in 
AVasliington on June 9th, and to stop off for a visit 
to the G. II. P. plant in Philadelphia. 



tt 



LITTLE AMERICA" WANTS LUCKIES 




|HERE is a serious shortage of cigarettes in 
"Little America." The Byrd Expedition in 
the Antarctic is out of smokes and a loud 
clamor has gone up. David N. Paul, of Cluir- 
leroi, and his brother received a IT. S. Anny radiogram 
from the ''Bear of Oakland," flagship of* the expedi- 
tion, wliich told the story in cryptic flashes. 

Their brother, B. W. Paul, assistant chief engineer 
aboard the "Bear," has wirelessed for 3()0() cigarettes 
])v mail. 

The radiogram was received by way of Wellington, 

Xew Zealand, Buenos Aires and New York City! 

"Please send me 3000 Lucky Strike cigarettes by mail. 

Will pay you on mv return home. There is a short ai^e 

here. LoveB. W. Paul." 

David and Lester Paul, both of whom are on IT. S. 
Tnsj)ection Service boats, bade goodbye to their brothei- 
last winter when he shipped with $20 worth of cigar- 
ettes and intended to buy more from the ship's store. 
Later he wired that nmny of the cigarettes had been 
damaged and that the shortage w^ould occur. 

David Paul lives in Fifth Street, Charleroi, and is 
stationed on the "Tecumseh." Lester is stationed on a 
boat of the Jones & Laughlin line and lives on Neville 
Island, Pittsburgh.— ^f?/^ Wiper, in Charleroi (Pa.) 
Mail, May 1, 1934. 



w 



NO STATEMENT ON TAX CUT 

Acting Secretary R. G. Tugwell today made tl 
following statement: "No statement of the attitude of 
the Department of Agriculture on the proposed hori- 
zontal tax reduction on tobacco products has been 
made. We are giving the matter further studv." 



It is not too late to make plans to cash in on 
Father's Day in a big way. 

You sell what every Dad likes. Don't keep that 
fact a secret. 

Sunday, June 1 7 th, is the date. 



/© 



Th* Tobacco World 




NBC 

RED NETWORK 

9:30-10 P. M., E. D. T. 

New York WEAF 

Hanford WTIC 

Providence WJAR 

Uorcester WTAG 

Poriland WCSH 

Philadelphia . . WFI-WLIT 

Schenectady WGY 

Buffalo WBEN 

Pittsburgh WCAE 

•i30-9 P.M., E.S.T. 

Baltimore WFBR 

Washington WRC 

Cleveland WTAM 

Detroit WWJ 

Cincinnati WSAI 

•t30-9 P.M., CD. T. 

Chicaso WMAQ 

7i30-t P. M., C. S. T. 

St. Louis KSD 

De» Moines . . WOC-WHO 

Omaha WOW 

Kansas City WDAF 



U. S. Cigars Up Nearly 222 Millions in 10 Months 



TEN MONTHS WITHDRAWALS FOR CONSUMP- 



('iu;ars: 
(Jlass A- 

U. S. 
P. R. 
P. I. 



TION 

Ut 10 Mas. 
Fiseal Ir. 1934 

:], 148,200,000 + 

49,()7(),28() + 

201,1)27,890 -f 



— Decrease 
-\- Increase 
Quant it If 

30:1145,015 

1,345,060 

60,923,130 



Total 3,339,858,170 + 371,414,405 



Class B— 

\J m k3» •••••• 

P I 

Total .. 



29,666,185 

2,365,100 

187,334 



— 3,383,127 

-f 1,698,()50 

— 342,082 



32,218,619 - 



2,027,159 



( lass C— 
LI. f*^. • . 
P. R. . 
P. I. . 



476,538,118 
824,180 
220,018 



— 71,949,010 

— 99,900 
-I- 394 



Total 



477,582,316 — 72,048,516 



(lass D— 

U. S. . 
P. R. . 
P. I. . 



• • • • 



• • • • • 



30,292,337 — 



1,000 
2,2(K) 



+ 



Total .. 



3(;,295,537 — 



Class K- 

u. s. 

p. R. 
P. I. 



• • ■ • * 



4,401,849 
2,970 



Total 



4,404,825 — 



5,318,9(K) 
500 
124 

5,319,270 



668,128 

23,847 

691,975 



r«»tal All Classes: 
P T 



3,695,158,489 + 

52,860,560 -f- 

202,340,418 + 



221,820,450 

2,943,310 

60,557,719 



Grand Total . . 3,950,359,407 + 291,327,479 



Little Cigaib : 

u . o 

P. R 

P I 

Total 



188,495,987 
2,020,000 



191,115,987 — 



984,053 
1,484,000 



499,947 



Ci«carettes : 

U. S 93,331,955,912 + 9,220,329,366 

P. R 3,949,800 -f 1,545,460 

P. 1 1,520,850 -h 143,240 



Total 93,337,426,562 + 9,222,018,066 



La rice Cigarettes: 

U, S. 

P R 

P I 

Total 

SiiiilT (lbs.): 

All r. s 

Tu))a('co (iiifd. lbs.) 

P I 



84,060,700 + 

855,000 -h 

6,400 — 



81 ,637,105 

445,000 

5,591 



84,922,100 + 82,076,514 



31,582,256 + 



254,849,883 -f 
81 — 



Total 254,849,964 + 



2,665,087 



4,539,011 
131 

4,538,880 



Send Two Dollars, with the coupon below to The 
Tobacco World, 236 Chestnut St., Phila., Pa., and 
get your copy twice a month for a year. 



Name. 



Street No. 

P. O 



JState 



June 1. 1034 



n 



JUNE 15, 1934 



LIBRARY 



Esnblished 1886 



"BEST OF THE BEST" 




^^^^^ A. SANTAELLA & CO. 

Office, 1181 Broadway, New York City 

FACTORIES: Tampa and Ktp Wtst. Florida 



OUE HIOH-OKADE NON-EVAPOBATINO 

CIGAR FLAVORS 

Make tobacco meUow and smooth in character 
and Impart a most palatable flavor 

FUYORS FOR SMOKING tnd CHEWING TOBACCO 

Write for List of Flavors for Special Brands 
AHTUN. AIOMATIZEI. EOX PLAVOIS. PASTE SWEETENEKS 

FRIES & BRO., 92 Reade Street. New York 



.,.;v»/j;\»y^>»yj;.Vf/^iV^,'-if^nJj/-nfy..vfy.ivt/ • •■:s9Ji'>9J»S9/::\*J 



•/"IXSWlXf/'lVf/Jlv^ 



Classified Column 



The rate foi this colanin is tfiree cents (3c.) • word, with 
a minimum charge of seventy-five cents (75c.) psjsbls 
strictly in advance. 



l^nr^^1^;rsan^v>^?s^1ryivlr^^/yflrAi^r,r/yrt^/i^^1^y^ 



POSITION WANTED 



CIGAR SALESMAN COVERING EASTERN PENNSYLVA- 
NIA and Local Territory desires connection. Large following. 
Address Box No. 580, "The Tobacco World." 

Newspaper and magazine advertising executive, thoroughly 
experienced, formerly with local newspapers and agencies, and also 
advertising manager. Position with firm desiring an advertising man, 
salesman or assistant to manager. Knows marketing, merchandis- 
ing and distribution. Salary not as important as opportunity to 
demonstrate actual worth and ability. References the highest. 
Address, F. H. Riordan, 5915 Webster Street, Philadelphia. Pa. 

CIGAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON 
Automatic Machines, wants a position. Also instructs beginners. 
Address Box No. 558, "The Tobacco World," 



FOR RENT 



OFFICE AND FLOORS FOR CIGAR MANUFACTURING OR 
STORAGE — No parking restrictions; good location; low rent; 
freight elevator and loading platform. Will divide. Metals Coating 
Company of America, 495 North Third Street, Philadelphia. 



HAVANA CIGARS 



BEER WITHOUT CIGARS, IS LIKE KISSING WITHOUT 
LOVE — Adopt as your slogan, "Kiss your beer, but love your ci- 
gars." Specially those Havana blended, "Good to the last Puff," 
manufactured by A. Ramirez & Co., Post Office Box 1168, Tampa, 
Fls. Write them for particulars today. 



Tobacco Merchants' Association 
Registration Bureau, JtV^YoS'cm 

Schedule of Rates for Trade-Mark Services 
Effective April 1, 1916. 



Registration, 

Search, 

Transfer, 

Duplicate Certificate, 



(see Note A), 
(see Note B), 



$5.00 
1.00 
2.00 
2.00 



Note A— An allowance of $2 will be made to members of the Tobacco Mer- 
chants' Association on each registration. 

Note B— If a report on a search of a title necessitates the reporting of more 
than ten (10) titles, but less than twenty-one (21), an additional charge of One 
Dollar ($1.00) will be made. If it necessitates the reporting of more than twenty 
(20) titles, but less than thirty-one (31), an additional charge of Two Dollars 
($2.00) will be made and so an additional charge of One Dollar ($1.00) will be 
made for every ten (10) additional titles necessarily reported. 



NEW REGISTRATIONS 

GERHART'S AFFIDAVIT CIGAR:— 46,327. For cigars. March 
.^1, 1934. i:. S. (ierhart. Allcntown. I'a. 

TRU-HAVANA:— 46,327. For cigars. M. Block, Rrooklvn. .\. V 
May 4, 1934. (By consent of Consolidated Litho. Corp., Brook- 
lyn, N. Y.) 

1 BAGGER: — 46,332. For all tobacco products. Harvev's Syra- 
cuse, X. v., May 15. 1934. ^ » .> ■* 

2 BAGGER: — 46,333. hor all tobacco products. Harvev's. .Syra- 
cuse, N. V., May 15, 1934. 



TRANSFERRED REGISTRATIONS 

PARK AVENUE:— 44,025 (Tobacco Merchants' .\ssi.ciati«.n). l-or 
cigars, cigarettes and tobacco. Registered bv 1). Fmil Klein Co. 
Inc.. New York. N. Y., Xc.veniber 11, 1924.' Transferred t(. Xati 
Nov Interstate Co.. New York, X. Y.. and re-transferred bv Inter- 
state Co.. Chicago. III., successors to the Van Xov Interstate Co. 
to D. Eniil Klein Co., Inc., New York, N. Y., May 3, 1934. 

PARTELLO: — 18,889 (Tobacco World). For cigars, cigarettes, 
cheroots and stogies. Registered bv Superia Cigar Mfg. Co., De- 
troit. Mich.. October 28, 1909. Transferred by San relino Cigar 
Mfg. Co.. Detroit, Mich., successors to the original registrant, to 
the American Bo.x Supply Co., Detroit. Mich. 

LIFE'S HANDICAP:— 19,126 (Trade-Mark Record). For cigars. 
Registered May 5. 1898. by L. Lew & Son. Xew York, X. Y. 
Transferred by Schlegel Litho. Corp.. Xew York, X. Y., who had 
acquired all brands of the original registrant, to American Bo.x 
Supply Co., Detroit. Mich.. May 10. 1934. 

DON EQUESTRO:— 21,888 (Trade-Mark Record). l-or cigars. 
Registered December 8. 1899, by Henry Drucker, Xew York. X. Y. 
Through mesne transfers ac<juired by .American Box Suppiv Co., 
Detroit. Mich., and re-transferred to KIsie Bennett, Detroit. Mich., 
May 9, 1934. 

FERDINAND MAGELLAN:— 133,255 (Patent Office). Fi>r cigars. 
Registered July 20. 1920, by The Harkert Cigar Co.. Daveni»ort. 
Iowa. Through mesne tran>fers ac(iuired by Henry W. Pcabody 
v\ t San Francisco, Cal.. and re-transferred to 11. .M. (Jreen & 
Si 'II. .San Francisco, Cal.. .\pril 24. 1934. 

MYLDA: — 46,178 (Tobacco .Merchants' .Association). 1 ..r all to- 
bacco products. Registered lebruary 23, 1933, by James C. Trezc- 
vant, Tampa. Fla. Transferred to Havatampa Cigar Co.. Tampa, 
Fla.. May 7, 1934. 

NEW DAY: — 44,537 (Tobacco .\lercliant>* .Association). For all to- 
bacco products. Rcgisurcd March 25, 192'', by Chas \'. I'uscli 
Sons. Marysville. Kan. rransferre<l to J. J. McCaulev & .Son, 
rhrichsville. Ohii.. May 14, PM4. 

VETZEL: — 46,302 (Tobacco Merchants' .Xs^ticiation). I- or cigar.-', 
cigarettes and tobacco. Registered March 8. 1934. by R. P. X'etzcl. 
Melbourne, Fla. Transferred to .Melbounu' ( iwar I artery, Mel- 
bourne, 1-la.. not Inc. (a partnership bttwcen R. P. \ ctzel and C. 
F. Daniels). .May 1. 1934. 

THREE BAGGER:— 5,761 ( Tobacct* Leaf). F'or cigars. Regis- 
tered May 22, 1891, by Lindsey X. Oliver, Boston. Mass. Trans- 
ferred to H. H. Finley. Syracuse. X. Y.. and re-transftrred to Har- 
vey's, Syracuse. X. Y., May 22. 1934. 

PANIC: — 9,152 ( I'obacco Leaf). I-'or cigars, cheroots, smoking an<l 
chewing tobacco. Registered Xovember 1, 1894, by Ruhe Bros. 
Co., .Allentown. Pa. Transferred to Geo, W. Zimmerman, Allen- 
town. Pa., .\pril 22, 1918, 




COMMON SENSE 



The importance of attractive and dependable containers for 
fine cigars is recognized by the progressive cigar manufacturer. 

Generally the brands that are increasing their goodwill in this 
present analytical market are packed in the new improved 
AUTOKRAFT cigar boxes. 

Cigar Manufacturers who have not investigated the value of 
the merits and economies of the splendid and inviting package 
may obtain complete details promptly by addressing the 
AUTOKRAFT BOX CORPORATION. 



> 



Phila., Pa. 
Hanover, Pa. 
Cincinnati, Ohio 



^ «^ ^ _ . ^- ^^ « w York, Pa. 

AUTOKRAFT BOX CORPORATION Chicago, iii. 

LIMA OHIO Detroit, Mich. 

A NatiorvWide Service Wheeling, W. Va. 



4 " - ■ ■ 




iiiiiiHiiiiiiiiimiiiiiii 




PUBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHIUA.. PA, 



After all 
jiothing satisfies like^ 
a good cigar ^ 



WOODEN BOXES 

Are the Only Natural Humidor for Cigars. 



Pack your cigars in wooden boxes and preserve 
their delicate aroma, mellowness and flavor 
right up to the time they are passed over the 
counter to the customer. 

Discriminating cigar smokers prefer to select 
their favorite brand from a wooden box— and it's 
good business to cater to the dealer and con- 
sumer by packing your cigars in wooden boxes. 



p 




WHEN BUYING CIGARS 

Remember that Regardless of Price 

THE BEST CIGARS 

ARE rAGKCD l> 

WOODEN BOXES 




THE TOBACCO WORLD 



Vol. 54 



JUNE 15. 1934 



No. 12 




HE current Camel cii»arette advertising cam- 
paign is more than ordinarily interesting be- 
cause it is getting down into the reasons why 
a smoker smokes. ''From a famous research 
laboratory in New York," the text reads, "comes a 
basic discovery that throws new light on our past 
knowledge about cigarettes. It embodies an 'energiz- 
ing effect' ... a harmless restoration of the flow of 
natural body energy ... a delightful relief from 
fatigue and irritability." Each release is accompanied 
by a graphic chart picturinu' the variation of human 
ciiergy during the day. ''Who hasn't felt 'dog-tired' 
after work . . . with a long evening ahead . . . 
and dinner time still an hour away! That's just one 
(»f the nuiny, many tunes during the day when you will 
want to ligiit up a Camel." Elsewhere, the copy treats 
of the "energizing effect, " the "lift which is a re- 
lease of your own natural energy . . . your latent 
energy made easily and harmlessly available. So 
when you're feeling run-down, tired, 'all in,' smoke a 
Camel and see what ha[)pens. That tired feeling slips 
away. Camels have helped your own body to help 
itself and bring you back in 'pep' and energy." 

Cj3 Ct} CT3 

HE New York research laboratory quoted in 
the Camel cam])aign is not the only recent 
authority for the belief that there is more to 
cigarette smoking than a taste which provides 
<'phemeral ])leasure. Witness the findings of Profs. 
Howard W. Haggard and Leon A. Greenberg, of the 
LalKjratory of Applied Physiology, Y^ale University, 
whose paper, "The Effects of Cigarette Smoking 
Cpon the Blood Sugar," was reprinted in the March 
1st issue of The Tobacco World. These investigators 
learned that cigarette smoking temporarily relieves a 
condition of hunger. Witness also the despatch from 
tlie eighty-fifth annual meeting of the American Med- 
ical Association regarding the cooling of the skin re- 
sulting from the smoking of one cigarette. The sig- 
nificance of some of the findings of the scientists may 
not be clear to the lay mind, but this professional in- 
terest must have the ultimate effect of stilling forever 
the fear of harmfulness attending the .sensible smok- 
ing of cigarettes. It marks the beginning of the end 
of what may be termed the negative note in cigarette 
advertising.* It has seemed to us that too much cigar- 
ette advertising has been of a negative character. The 
inference drawn from much of this advertising was 
that the cigarette, generally speaking, was not a good 
ihing for a person to indulge in, because of its harmful 
elTects, but that the particular cigarette being adver- 
tised did not suffer from that general curse. There 
has been too little, if any, of the positive injunction 
<»r suggestion to smoke a cigarette because "it is good 
for what ails you." And it must be just that. 





OW else account for the volume of cigarette 
smoking in tiiis country! Those of us in the 

industry know that 111 billion cigarettes were 

smoked in tlie United States during 1933. But 
that does not by any means represent the total. 
Nobody knows how many "roll your own" cigarettes 
were consumed. It has been estimated, however, that 
fifty-five billion of them were rolled. Be extra con- 
servative, if you will, and cut the figure in half. You 
still have more than twenty-seven billion cigarettes 
rolled by smokers last year. Add the conservative 
"roll your own" figure to that of the machine-made 
brands. The sum is 139 billion, 352 million cigarettes. 
Do you realize what that means! 

Cj3 CJ3 Cp 

T MEANS eleven billion, 612 million cigarettes 
were smoked in one month, or more than were 
smoked during the entire year 1912, only 
twenty-one years earlier. It means nearly 382 
million cigarettes smoked everv dav. It means that 
during the year 1933, every minute of the sixteen 
waking hours of every day, nearly 400,000 people 
lighted cigarettes! 

Cj3 Cj3 Cj3 

OW the 1933 consumption of cigarettes in toto 
represented a substantial increase over 1932, 
which showed an advance over 1931, which, in 
turn, recorded a gain over 1930, and so on. 
That constant increase in consumption during the 
period of the depression was true of nothing else. 
People not only did not stop buying cigarettes as they 
stopped buying everything else, but, on the contrary, 
they bought more of them than ever. When they 
could no longer pay fifteen cents a pack, or a quarter 
for two i)acks. they bought cheaper cigarettes at ten 
cents a pack. And when even the dimes became scarce, 
they started to "roll their own." The point is that 
tlu'ij kept OH siHoJcing. W^HYf 

Ct3 CX3 CX3 

HE present Camel series gives one answer to 
this question. It is not too much to expect 
that this is only the beginning of a general 
educational canq)aign on the part of cigarette 
nuinufacturers, pointing out the "why" of the public's 
recourse to the cigarette as a necessity on an almost 
equal footing with food. Such a general campaign 
wuU not only change the mental attitude of those who 
still suffer from the nicotine bugbear and are thus 
still firmly opposed to tobacco in any form, but it will 
also reassure the great army of smokers who have a 
lingering fear that their indulgence is not a good thing 
for them, but continue to smoke in spite of that fear. 





Xk-rnBArro world festablUhed 1881) is published by Tobacco World Corporation; Hobart B. Hankins, President and Treasurer; 
C.r.lln Ha„k^ntSe«eta^ Office 2^^^^^^ Street. Philadelphia, Pa. Issued bn the 1st and 15th of each month. Subscriptions, avail- 

^^l.'^\o^o^\n%"g^^^^^^ a year. 20 ce'nts a copy; foreign, $3.50 a year. Entered as second-class mad matter. 

December 22, 1909, at the Post Office, Philadelphia, Pa., under the Act of March 3, 187V. 



Distributors Hear Their Code Is Signed 

Davis, Kolodny and Scrambling Re-elected at Convention 



«-— -ITII forty-oiio States r('])r(»soiit('(l ])y (U'loi»atos 
^\^ ill inTsoii and six States ro))rost'iit('(l by i)rox- 
it's, thus loaviiiu' only one State inirepi-esentod, 
the see«)nil aiimial convent ion of the National 
Association of Tobacco Distiihntors came to an official 
end with the election of officers, in the MavHower Hotel. 
Washiniiton, on Sundav niuht, June lOth. Xearlv 400 
nieniiH'is were present at tlie convention's delibera- 
tions. The two-day convention was chaiacterized by 
the delegates, who rt»i»resented the cream of tol)acco 
wholesalers throuiihout the country, as the best- 
conducted, most efticient, and the most ])nsinesslike 
liatherinii- of its kind they had ever attended. 

H. Asbury Davis, of Baltimore, was re-elected 
president ; Joseph K(dodny, of Jersey City, was re- 
elected secretary: and (Jeorii*' B. Sci*amblin,i»', of (Cleve- 
land, was re-elected treasui'ei'. Amonn the vice-])resi- 
dents named: K. i\ Dearstyne, All)any: J. P. Man- 
ninii. Boston: Alex Schwartz. Cincinnati: Jonathan 
Vipond, Scranton: and Louis Khrlich, Kansas City, the 
elections s])ell a second term lor Mebbi'ts. JDearstyne, 
Schwai'tz, and Vi])ond. 

The conventioneers were welcomed by John 
Louiihran, Washiugtou jobber, who then turned the 



ii'avel over to Piesident Davis. After openinic remarks 
by Mr. Davis and supi)lementary lemarks by First 
Vice-President Dearstyne, Secretary Kolodny read his 
annual report. Committees on Kesolutions* Nomina- 
tions and By-Laws wei'e then api)ointed. 

An address by Hon. Clyde Kelly, Conoressnian 
froin Pennsylvania, and father of the bill i)rovidini»- for 
maintenance of resale })rices, marked the ojK'nin*;' of the 
Saturday afternoon session. The report of the treas- 
urer was then read by Mr. Scramblin**-, and the report 
of the Code Committee by Mr. Kolodny, followed bv 
open discussion of the code i)rovisions. The event of 
the evenin<»- was the bancpiet in the main ballroom, ren- 
dered more enjoyable by *»()od news re<»ardin.i»- Coch* 
a]>i)roval received late in the afternoon. 

Evidence of the earnestness of the distributors was 
had in the attendance at the Sunday morninu: session, 
when were heard the reports from the Conmiittee on 
Kesolutions, the Committee on Nominations, and the 
Committee on By-Laws, previous to a .ucneral discus- 
sion of measures for the upliflin.ir of the industry, and 
for the elimination of abuses and harmful ])ractices. 
Holdiui;- a ))rominent place in these discussions was a 
plea for a nation-wide publicity campaign. 



Bills Affecting Tobacco Industry 



PRESIDENT SIGNS TARIFF BILL 

Both houses havin.ir j)assed the administration 
measure (H. K. SdST) amending; the existin«»: taritT act 
so as to i»:ive the Presulent authority to nejrotiate recip- 
rocal tariil* treaties and to make modilications of exist- 
ing' duties, imjMjrt restrictions, etc., with the limitation 
that "No proclamation shall be made increasinjz: or de- 
creasinu* by more than 50 i»er cent, any existing:: rate of 
dutv or transtVninn anv article between the dutiable 
and free lists," the measure was si«ined by the Presi- 
dent on June PJth. 



i 



TOBACCO CONTROL BILL APPROVED 

The Seiuite Airriculture Committee on .June 12tli 
apj)ioved without chanire the House bill to control to- 
bacco production throuirh taxation. The bill is alon^ 
the lines of the Bankhead compulsory cotton-control 
measure passed earlier in the session. 

The bill would authorize the Secretary of Agricul- 
ture to impose a tax of .'}3'.$ per cent, of the selling? jjrice 
on growers who refused to abi<le by <piotas assigned by 
the Farm Administration. He would have the discre- 
tion, however, to make this oidy 2.') jier cent. 

Tax exemption warrants would l)e issued to <i:row- 
ers to enter into the A. A. A. au:reements, and in certain 
counties where the ])roduction aureements did not pro- 
vide an ecjuitable distiibution the Secretary could in- 
crease the (plot as l)y .') |)er cent. The tax would be 
ap|»licable to all tobacco luirvested in the crop year 
19.'j4-1935 except Maryland tobacco, Vir«cinia sun-cured 
and ciirar-leaf tobacco. 



HARRISON BILL "DEFERRED" 

Aecordinj^ to all indications, the so-called Harrison 
Bill (S. 281)7) which would jiermit States havinji: sales 
taxes in force to levy such taxes upon j^oods brou«i:ht 
into their States in interstate connnerce and which was 
passed in the Senate, will probably remain utipassf/l in 
the House. 

It will be recalled that consideiable opposition has 
<levelo])ed ai^ainst this measure and that very impres- 
sive hearings were held before the House Connnittee at 
which this bill was most forcefully and vigorously op- 
p<»sed. 

It is now reported that the House Connnittee has 
announced that consideration of this measure has been 
"deferred" by the committee, which is interjireted to 
mean that the bill will remain in the committee unre- 
l)orted. 



2 YEARS' LIMIT ON KERR BILL 

The Kerr Tobacco Control Bill (H. R. 9(m)) has 
been passed in the House with an amendment limitinj^ 
its duration to two years. It is to be noted that ci^rar 
leaf tobacco, Maryland tobacco, and Vir«i:inia sun-cured 
tobacco, harvested in the crop year l!).*U-l!).'^r), are ex- 
empted from the tax; and further, that the Secretary 
of Agriculture may, under certain circumstances, estab- 
lish (piotas for importation of cipar tnhactft, trhich iif- 
chtfh's also tn(inufa<tnr('fl ciffars, and impose an imi)ort 
tax upon the excess of such quotas allotted to importers. 

The measure is now awaiting action by the Senate. 
In this connection, it is to be noted that a similar bill — 
S. 3630 — has been pending for some time in the Senate 
Agricultural Committee without any action thereon. 

Tki Tobacco fVorU 



Justice Calls for Tax Cut 

Farmer, Manufacturer, Merchandiser and Consumer Would Benefit 

By COL. DESHA BRECKINRIDGE 




HIO TAX on cijj^arettes and other tobacco prod- 
ucts had its jijenesis lar<»:ely in the thou<;ht that 
not only was tobacco a luxury, but injurious. 
I do not attemj)t to ^ive the full record of the 
imi)osition of the taxes, but at the be<i:innin«^ of 1917 the 
tax on cijjjarettes was $1.25 a thousand; as a war meas- 
ure on October 4, 1917, it was increased to $1.65, or 
.d)out 3Vl» cents on a pack of twenty. On November 2, 
1917, it was increased to $2.05 a thousand, a little more 
than 4 cents a pack. That was the maxinuun during 
the war. To make up for the revenue lost because of 
the cominj:: of ])rohibition, on February 25, 1919, the 
tax was raised to $3 a thousand, where it has remained 
since. The ])re-war tax on chewinj? and smokin^j: to- 
bacco was 8 cents a jwund. It was increased to lOMi 
cents a pound in October, 1917, and in November, 1917, 
it was increased to 13 cents a i)ound. On February 25, 
1919, it was increased to 18 cents a pound. 

In the five years since 1929, when grim privation 
has marched through the tobacco ])atch, when the wolf 
of want has howled at the very door of tobacco growers, 
tlie Government has collected over $2,()0(),()0(),()00 from 
the tax on tobacco ])roducts; the annual revenue taken 
l»v the Government through the tax on tobacco has aver- 
aged over $4tK),(K)0,0(K) a year. 

The Government has pro])erly and of necessity ap- 
propriated hundreds of millions of dollars of money- 
raised through taxation for the benefit of the growers 
of wheat and of cotton and of corn and for the pro- 
ducers of hogs and cattle and for the relief of the unem- 
ploved in city and in country. Yet during those years 
it has imposed on one and only one agricultural i)roduct 
of which I know or have been able to learn on which the 
tax imposed to raise revenue for the war has not V)een 
reduced, but increased. It is the only ])roduct on which 
the tax imi)osed because of the coming of prohibition 
and the decrease in the revenue from the tax on s])irit- 
nous and vinous beverages has not been reduced. 

JUSTICE CALLS FOR CUT 

Unorganized, inarticulate until they found a voice 
through Fred Vinson, the tobacco farmers have con- 
tinued to have the product of their sweat and toil and 
sacrifice taxed far !)eyond any other j)roduct grown or 
manufactured in Anierica. Fvery numdate of wise 
cconomv, everv dictate of justice demands that there 
shall be a reduction in this tax and, furtiier, that all 
who are interested in the ])roduction of tobacco shall 
unite in making that demand effective. 

Due to the efforts of Representative Vinson, the 
Ways and Means Connnittee, of which he is a member, 
ajipointed a sub-committee to investigate and ascer- 
tain the facts and report to the full connnittee. That 
lonnnittee held hearings in Washington in March and 
April at which there appeared representatives ot 
manufacturiMs. I have here the report of those hear- 
ings. They are interesting, astounding, tragic. 

To smnmarize briefly, yet with practical accuracy, 
as stated bv James ('. Stone, who aiifieared before the 
connnittee,' a man who in 1933 had thirty acres of 

June IS. 1934 



land in tobacco that i)roduced one thousand pounds to 
the acre received for that tobacco approximately 
$35{)(), of which the landowner received half and the 
men and women and children who cultivated and 
wormed and cut and stripped that tobacco half — less 
than $1800 each. On that tobacco the government im- 
posed and collected taxes of api)roximately $30,000. 

Is there any justification for the imposition of 
such taxes! Is there any palliation for governmental 
officials, whether they be representatives in Congress 
or officials of the Department of Agriculture, who fail 
to exert to the limit their influence to have this in- 
tolerable burden of indefensible taxation reduced? 

The sub-connnittee, of which Mr. Vinson was 
chairman, made a rejjort to the full committee that is 
a condensed yet grai)hic recital of the facts, with the 
reconnnendation that the taxes on all tobacco products 
be reduced 40 per cent. The Ways and Means Com- 
mittee, by a vote of seventeen to two, reported a bill 
providing for such a reduction. ]\Ir. Doughton, chair- 
man of tlie Wavs and Means Committee, has submitted 
a rei>ort favoring the passage of that bill. 

HEARD NONE IN PROTEST 

We heard scores testify at the hearings in AVash- 
ington. AVe have talked with many more. We have 
heard no human being, either directly or indirectly, 
attempt to justify the present tax. There are some 
who have said that the Go\ernment could not stand 
the loss of revenue that would come through the re- 
duction of the tax. There are others who favor what 
they call a graduated tax, instead of the horizontal 
reduction. 

The (piestion of the loss of revenue that the Gov- 
ernment will suffer is analyzed conclusively in the 
rejiort by the Vinson committee. As based on the fig- 
ures of 1933, when the aggregate tax on tobacco prod- 
ucts was ap])roximately $400,000,000, the possible loss 
to the Government through a 40 per cent, reduction 
would be $160,000,000. The increase in the use of 
cigarettes in the first two months of this year indicates 
that there will be an increase of at least 15 per cent, 
in the consumption of cigarettes this year. In Jan- 
uary and February of this year, the last two months 
for which I have the figures, the revenue from tobacco 
taxes increased by $12,000,001), which would indicate 
an increase of $72,000,000 in the tax on cigarettes alone 
in 1934 over 1933, which would make the tax paid on 
tobacco products $472,000,000. 

This natural increase would, in large measure, 
make up for the 40 ])er cent, reduction. In 1929 there 
were ai)proximately eight billion cigarette i)apers used 
in roll-vour-own cigarettes, upon which taxes were 
paid. In 1933 taxes were paid on 48 billion cigarette 
papers — six times as many })a])ers sold for roU-your- 
own cigaiettes in '33 as in '2!). It takes two jmunds 
of tobacco on which the (Jovernment at i)resent col- 
lects eighteen cents to make 1000 roll-yonr-own cigar- 
ettes. It takes three ])ounds of tobacco on which the 
Government collects a dollar a ])0und, and under the 



reduction would collect sixty cents a pound to make 
1000 manufactured cigarettes. 

WOULD LOWER PRICES 

With the reduction of 40 per cent, the price of 
the cigarettes known as standard hrands would be re- 
duced so that they would be retailed at ten cents a 
package, enabling the juirchaser to buy three packs 
for thirty cents, for which he now purchases two. It 
would ena])le tlie manufacturers of ten-cent cigarettes 
to retail their cigarettes with larger profit at two pack- 
ages for fifteen cents. 

Can any one doubt that with the reduction of 33 1-3 
per cent, in the price of standard brands and 25 per 
cent, in the price of the ten-cent cigarettes that there 
would be an enormous increase in the use of manu- 
factured cigarettes: that millions of those who since 
1929 have made the sale of cigarette papers jump from 
eight billion to forty-eight billion would return to the 
use of manufactured cigarettes? 

What would be the increase in the consumption of 
cigarettes none may tell with absolute accuracy. The 
estimates vary from 20 to 7.') per cent. James C. Stone, 
whose judgment by reason of his ability and experi- 
ence is entitled to respect, stated on the stand that 
in his opinion a decrease of 50 ])er cent, in the tax 
would in time increase the consumption over 50 per 
cent. 

The authorized sjmkesman for the Big Four com- 
panies stated before the committee that if the 40 per 
cent, reduction in taxes were made the companies 
would sell their cigarettes at a price so that they could 
be retailed at ten cents. 

The difference between the amount paid by con- 
sumers under the present tax and the amount that 
would be paid by them under the reduction, only on 
the consumption of last year, amounts to $136,000,000, 
which would be left in the i)ockets of the consumer to 
spend for other products. 

CONSUMER BENEFITS, TOO 

The man who uses one package of cigarettes a 
day, the tax on which is six cents, pays in taxes $21.90 
a year. Under the statement by th*e spokesman for 
the great companies, none of the tax reduction would 
be retained by the companies. We have no illusions 
that the great companies are benevolent associations 
formed and conducted for the benefit of the growers. 
They were organized and have been conducted and 
will be c()nducted for the benefit of the stockholders. 
The profits they have made have been out of all pro- 
portion to the return to the tobacco growers. But 
under this aihninistration the full benefit of the re- 
duction of taxes will be passed on to the consumer. 
With the inevitable increase in the consumption of 
cigarettes, with a certain and inevitable increase in 
the price of tobacco because of the increased demand, 
in my judgment, the manufacturers both of the present 
fifteen-cent and the present ten-cent cigarette will 
make as great or greater profits than tliev now make 
because of the greater consumption. That is the only 
chance they will have to make more, by increasing the 
consumption of cigarettes and tobacco products, lead- 
ing to an incieased demand for the raw tobacco. 

From 1919 to 1929 the average for hurley tobacco 
was, as I recall, between twenty-one and twenty-two 
cents. From 1929 to 1934 the average was between 
6 



ten and eleven cents. I am as certain as I am of the 
rising of the sun that with this reduction the average 
for hurley tobacco will equal or exceed the average 
paid before '29. T believe it will be higher than that 
average, but that is a matter of opinion, the correctness 
of which can not be proved until the reduction is made. 
Speaking from my own experience, with full ap- 
l)reciation of the fact that you gentlemen may know 
more than I, I do not believe that many, if any, realize 
to the full the possibilities of the reduction in the tax 
on tobacco, nor the vital part that tobacco plays in 
the well being and happiness of the people of the state. 

IS BOON TO FARMERS 

I do not take time to go into the figures. I only 
ask all of you to ascertain the full facts for yourselves 
and clothe them with your imagination. There are 
more than 100,000 tobacco farmers in Kentucky, the 
great majority of whom are today just hanging on 
the edge of self-sustained subsistence. An increase 
of 50, or if I am correct, a 100 per cent, in the price of 
tobacco this coming year, which will come with the 
reduction of the tax, will raise them and their families 
above the danger of being submerged. If they are 
submerged the Government, under the policy of this 
administration, must and will care for them, which 
will cost more than the Government will lose through 
the reduction in the taxes. 

Not only will those hundred thousand tobacco 
farmers be benefited, but every one in tJieir com- 
munit}' — the doctor, the lawyer, the merchant, the 
school teacher, the laboring man, every one who is 
benefited by the circulation of the golden stream that 
comes from the sale of the gohlen leaf— will be bene- 
fited and communities made more self-sustaining, with 
what I believe the certainty, most assuredly the possi- 
bility and probability that instead of requiring aid 
from the Government they will be able to extend aid 
to others. 

There are some mysterious forces opposing the 
I)assage of the Vinson bill. What they are I have been 
unable to ascertain sufficiently accurately to make 
public statement. Yet whatever they are they should 
be exposed to the light that all may*know who favors 
and who opposes this reduction. 

THE GRADUATED TAX 

Just a word, and only a word in regard to the so- 
called graduated tax as favored by Mr. Axton and by 
Brown-Williamson. The only man whom I know who 
declares himself in favor of it who has no direct or 
indirect financial interest in the manufacture of ten- 
cent cigarettes is Mr. James ('. Stone, for whose 
opinion I have great regard, yet who in a two-hour 
conversation that I sought with* him when I was trying 
t(» inform myself and studying the tpiestion convinced 
nie ])y his argument in favor of the gradimted tax that 
It was mipractical and would be of inestimable injury 
to the tobacco growers. 

I want the manufacturers of ten-cent cigarettes 
to succeed; I want every factory that furnishes an 
outlet for the growers of tobacco to succeed and ex- 
pand. But T am absolutely convinced of two things; 
first, that the imposition of the graduated tax would 
drive the manufacturers of all cigarettes to the ten- 
cent cigarettes, re<|uiring a lowering of the price paid 
for tobacco, and, funlier, that there is no possibility 




• • . It's irritating 
and it means . . . 
jangled nerves! 

Yes, it's irritating to listen to that 
constant, tuneless humming — and 
more than that, the humming is a sign 
of jangled nerves. 

If you notice any of those tell- 
tale nervous habits in yourself — if 
you whistle through your teeth — 
juggle your keys — drum on the table 
— then it's time to start taking care 
of yourself. 

Get enough sleep — fresh air — 
recreation — and watch your smok- 
ing . . . Remember, you can smoke 
as many Camels as you want Their 
costlier tobaccos never jangle your 
nerves. 



HAVE FUN! 

Send for¥KEE Game Book 

New — illustrated book of 20 ways to 
test nerves. Fascinat- 
ing! Amazing! "Show 
up" your friends. See 
if you have healthy 
nerves. Send fronts 
from 2 packages of 
Camels with order- 
blank below. . . Free 
book is sent postpaid. 




CUP AND MAIL TODAY! ■ 

R. J. Reynolds Tobicco Company I 

Dept. 112-D, Wlnston-S»lem, N. C. j 

I encloae fronts from 2 packs of Camels. | 
Send me book of nerve tests postpaid. 

I I 

Nam* .._„. I 

I I 

■ Sh^*t..... .. - 

I " I 

I City StaU I 

' Offer axplTM DMwmbarat. 1934 




COSTLIER TOBACCOS 

Camels are made from finer, MORE EXPENSIVE 
TOBACCOS than any other popular brand of cigarettes! 



SMOKE AS MANY AS YOU WANT... 
THEY NEVER GET ON YOUR NERVES! 



(CofUimied on Page 16) 



Tkt Tobacco World 



June IS. 1934 



Decrease in Manila Shipments Betokens 

Increase in Quality 




ERE'S an important cigar man wlio is ac- 
tually elated over advance news that May ship- 
ments in his branch of the industry have de- 
creased at least 20 per cent, in comparison witli 
April. ''That's the most hopeful sign that has 
appeared for a long time," he says. Who is this gen- 
tleman, and how does he explain this paradoxical com- 
ment / Just a minute. Meet Mr. C. A. Bond, tobacco 
agent for the Philippine Government since 1917, who 
has just completed a tour of the country in the interest 
of ^lanila cigars. 

"If the released figures show^ tlie 20 per cent, de- 
crease under April, as indicated b>' the advance 
unofficial reports," he will tell you, '''that can mean 
only one thing, namely, that the campaign to put an 
end to the shipment of inferior merchandise from the 
Philippines to this countr>^ has proved inmiediately 
successful. And when I refer to that as the most hope- 
ful sign that has appeared for a long time, I mean it is 
tangible evidence of the partial eradication of an evil 
which in my opinion, is responsible more than any 
other single factor for the decline of cigar smoking, 
and that is the offering for sale of cigars of such a 
quality that men got iuiything but pleasure from them 
and, through them, became estranged from the cigar 
as a form of relaxation. 

''When the unsatisfactor}^ quality of some of the 
cigars was suggested to Governor General Frank 
Murphy, of the Philippines, as the reason for the de- 
cline in Manila business as compared to that of several 
years ago, an investigation was started. Under his 
direction, the Collector of Internal Revenue notified 
Manila factories that Government approval would be 
refused to shipments of all cigars to this country under 
a price of $17 less 2 per cent, wholesale, excepting ship- 
ments to States imposing special taxes, where the mini- 
mum price would be $16.50 less 2 per cent. My col- 
league, David Moms, and I were instructed to report 
at once ever}^ instance of a violation of this ruling that 
came to our attention. W^e are engaged in that work 
now. 

''So it is no paradox at all for me to rejoice over 
the reported decrease for May. I am convinced that, 
with the elimination of practices which have allowed 
this country to be flooded with a cheap product from 
the Philippines, the Manila cigar will rise from its 
present too general acceptance as a 'two-fer' and will 
resume its old position as a good cigar of high quality. 

"There w^as never a time when the trade was as 
clean as it is right now. The cigars are coming in a 
good, undamaged condition. We have eradicated 
worm trouble. We have improved shipping facilities, 
obviating the danger of mold. And by administrative 
order of the Clerk of Internal Revennue, no shipment 
can be made until the cigars have been manufactured 
and completed at least two weeks, when they are boxed 
and carefully prepared for shipment, so that resweat- 
ing is no longer required; the cigars do not deteriorate 
and become musty. 

"There is no doubt in my mind that the principal 
cause for the present condition of the cigar business 
has been deterioration of quality and lowering of price. 
For that reason we are hoping for a speedy approval 

8 



of the tobacco codes, which, we believe, will help to pre- 
vent future price reductions and restore competition 
on the basis of quality rather than on the basis of price. 

"We have been through this low quality-low price 
situation before. In fact, it was back in 1915 that, 
because of a falling-off in shipments due to what 
seemed like a policy of 'any old thing at any old price', 
the Philippine Government passed a law requiring an 
inspection of shipments under a standard carrying a 
Government guarantee. Shipments then jumped from 
(iO million in 1915 to 110 million in 1916, 240 million in 
1917, and 320 million in 1920. 

"The Islands, you know, are proud of their cigar 
industry, and they have good reasons to be. Tobacco 
culture there dates back to 1578, when a patch of to- 
bacco was grown in La Union Province from seed 
brought from Mexico, by Padres Gomez and Sebastian. 
There is a tradition, too, that another priest, Padre 
Jose Garcia, grew superior leaf in the Cagayan Valley 
from seed he brought from Cuba. 

* ' The first shipment of Manila cigars to the United 
States came to Salem, Mass., in 1818, and until the 
close of the Civil War Manilas were imported cigars 
commanding the highest price in American cigar 
stores. Since 1909, when free trade was introduced 
between the Islands and the United States, Americans 
have been buying Manilas in conunercial quantities. 

"The Philippines export more cigars than any 
other country in the world. Their factories keep 20,000 
men at work. The cigar industry is the only one in 
the Islands employing handwork on such a grand scale. 
And it is significant, on the other hand, that the Unite<l 
States merchandise sold in the Philippines is all highly 
])roces8ed. That is still another reason why it is good 
to note the signs of a return to the old conditions of 
quality manufacture of (piality Manilas, assuring the 
continued employment of these 20,000 handworkers." 




SGHOPBACH-WHITE 

VERY i)retty wedding was solemnized at 4:30 
P. M. on June 2d, at the home of Mr. and Mrs. 
I. B. White, when their daught^^r. Miss W^ilhel- 
mina R. W'hite became the bride of Carl Schop- 
bach, of Collingswood, N. J. The house was beauti- 
fully decorated with spring flowers, which made a fit- 
ting setting for the ceremony. The bride was given in 
marriage by her father and was attended by her sister, 
Miss Amelia White. Frank Shrewsbury, a cx)llege 
chum of the groom, acted as best man. 

The bride is a graduate of Ursinus (^ollege, where 
she received her B. A. degree in 1933, and the groom 
is a graduate of Ilaverford College, where he received 
his B. A. degree in 1932. 

The father of the bride, I. B. White, has been asso- 
ciated with the old established firm of John Wagner & 
Sons, for a number of years, as manager of their cigar 
department, and is w^ell knowTi throughout the retail 
cigar and tobacco industry in this territory. 

After a honeymoon trip to New York City and New 
Jersey seashore points, the happy couple will reside in 
Collingswood, N. J. 




1954. LiociTT * Mms Tomcco Co. 



^«»* IS, 1934 



Tobacco Markets and Conditions as 

Reported from Abroad 



AUSTRIA — Accordiiiof to American Commercial 
Attache T. L. Hughes, reporting to the Tobacco Divi- 
sion, De})artmeut of Commerce, the vohime of sales of 
tJie Austrian T()l)acco Monopoly during the first two 
months of 1934 sliowed a slight increase, but since the 
greater percentage of retail sales consists of the 
chea|)er \'arieties of tobacco products, there was a de- 
cline of about 5 per cent, in revenues. 

The consumption of cigars, cigarette tobacco and 
pi})e tobacco increased, sales of snuff were maintained 
at about the same level, Init the quantity of cigarettes 
aiul chewing tobacco consumed during the i)eriod de- 
clined as compared with the same period of 1933. 

BKITISH .MALA V A— Imports of leaf tobacco into 
British Alalaya during 1933 amounted to 2,588,287 
pounds, of which 37.7 per cent., or 966,301 pounds, were 
imjmrted from the United States as against 1,957,331 
pounds, or ap})roximately 50 per cent., of the 1932 total. 

According to a report from the office of the Ameri- 
can Trade Commissioner at Singapore, made public 
by th© Tobacco Division, Department of Commerce, 
British Possessions furnished 1,407,809 pounds, or 54.4 
per cent., of 1933 leaf tobacco imports, as compared 
with 40 per cent, of the total during 1932. The volume 
credited to British Possessions in 1932 was 1,544,250 
l)ounds out of total imports of leaf amounting to 3,877,- 
713 })ounds. 

lu 1928 the United States supplied 1,192,840 
pounds of leaf; in 1929, 1,478,691 pounds; in 1930, 
2,940,213 pounds; in 1931, 2,451,387 pounds; in 1932, 
1,957,331 pounds. This is an annual average of 2,(M)4,- 
090 i)ounds, or 30.8 per cent, of all leaf imported during 
the five years. During the same period of live years 
British Possessions funiished 60 per ceut. of ali leaf 
imports. ^ ^^ 

The United Kingdom practically dominates the 
foreign cigarette market of British Malaya through 
one large British concern with factories in* the United 
States and England. Up to 1931 large shipments of 
cigarettes were made from the United States but in 
that year the vohime was small and in 1932 and 3933 
shipments from the United States were negligible when 
compared with total volume imported. Official records 
for 1!)33 credit the United Kingdom with 5,748,334 
pounds, British Possessions with 520,920 pounds and 
the T'nited States with 4731 pounds, out of total im- 
ports of cigarettes amounting to 6,652,762 pounds. 

Cigarette imports into British Malaya have shown 
a downward trend since 1925. The volume imported 
that year was 15,398,156 pounds, dropping b>- a few 
million pounds one year after another until lf)32, when 
the volume reached 5,160,020 pounds. There was an 
increase in 1933 amounting to 29 per cent.; however, 
the increase in total value was less than 1 per cent., the 
respective values amounting to $10,625,958 and $10,- 
690,204. 

The large imports of cigarettes from the I'nited 
States during the years 1927 to 1930, inclusive, were 
made almost entirely by the large British company be- 
fore mentioned. As indicated, large amounts of these 
cigan'ttes were reshipped to nearby markets, princi- 
pally to Netherland India. A changed company policy 



10 



caused practically all of the re-export business from 
Singapore to be stopped in 1931. It is not expected 
that imports of American cigarettes during 1934 will 
show any appreciable change as compared with those 
made during the years 1932 and 1933. 

As regards imports of American leaf tobacco, those 
during 1933 were substantially below the quantities in 
the preceding years, owing primarily to the fact that 
the Singapore cigarette-making plant of the large in- 
ternational concern aforementioned curtailed its activi- 
ties steadily during that year and by the end of 1933 
operations had practically ceased. Small amounts of 
leaf remaining on hand were still being used during the 
early part of 1934 for the manufacture of cigarettes. 
Certain amounts of American leaf are expected to be 
brought in for use by the plant at Kuala Lumpur but it 
is expected that this leaf will be received from the com- 
pany \s warehouses in England rather than from the 
United States direct. Accordingly, it is predicted that 
imports of American leaf from the United States direct 
will be extremely small during 1934. 

CHINA — The new Chinese cigarette tax schedule 
adopt<?d in early December, 1933, which represented 
more than a 45 per cent, advance in the tax rate on the 
second or low grade cigarettes constituting the bulk 
of the trade, is said to be without question a strong 
factor virtually forcing manufacturers (in efforts to 
absorb the increased tax without raising prices any 
more than necessary) to reduce to a greater degree 
than ever before the American leaf content in many of 
tlieir brands — in fact, to eliminate American leaf en- 
tirely from many low priced brands of cigarettes. 

In an analysis of the Chinese tax situation as it 
affects the consumption of American tobacco in China, 
American Assistant Commercial Attache A. Bland 
Calder advises the Tobacco Div^ision, Department of 
Commerce, that since the institution early in 1928 of 
the ** National Cigarette Tax" of 22M.» por cent, on 
domestically manufactured cigarettes, the tobacco 
business has undergone periodical increases in taxa- 
tion as necessitated by the continually pressing finan- 
cial problems of the National Government at Nanking 
in the vicissitudes through which it has passed since 
its formation on April 12, 1927. 

SUMATRA — Although it is much too early to at- 
t( mpt a forecai^t of the 1934 Sumatra tobacco crop now 
being planted, there are certain indications of its prob- 
able quality and size, as compared with that of 1933. 
American Consul D. W. Maher advises in a report, 
made public by the Tobacco Division, Department of 
Commerce, that no definite idea of the planted area can 
be had until some time lat-er when the planting is com- 
pleted, but there is reason to believe that the total area 
will be about the same as in the preceding year. The 
large producing companies are making no effort to 
reduce their production from the 1933 figure, and moht 
of them are preparing planting ground approximately 
equal to that of 1933. 

The fact that recent crops have been the smallest 
in the past fortv-five or fortv-six vears allows the selec- 
tion of the best land, both from the point of view of 
production and freedom from pests and disease. It 

Tht Tobacco World 



GIVE 





A WHIRL . . . 



and 

TUNE IN 
THE DIMES! 



SIR WALTER 

RALEIGH 




\ 



TARGET 

CIGARETTE- 
'TOBACCO' 



Wings 










A good number? Right! The new Dial 
smoking tobacco is a smooth blend of fine 
white Burley tobaccos. Crimp — cut to 
make it a cool, slow burner. Mild, but just 
mild enough to keep 'em coming back 
for more. A full one and three-quarter 
ounces to the tin — at least four more 
pipefuls than in the regular one-and-a- 
half-ounce tin. FREE cigarette papers. 
And it sells for a dime at a nice profit to 
you How's your stock? 



DIAL 



^Mv 



DGLER 




SMOKihgtoBACC 







l^iLM^ 



-UBHISMfc DOMESTIC 
llCABtTTt TOBACCO 






lowjiol^)**^^' 



BROWN & WILLIAMSON TOBACCO CORPORATION, LOUISVILLE, KENTUCKY 



Brown hk Williamson products are designed to bring 
you the motx profit in all lines and prices. Are you get- 
ting your share of profit from these live selling items: 
Kooi, the largest -selling IS-cent mentholated cigarette; 

^M'U- IS, 1934 



Raleigh, now selling at the price of ordinary cigarettes; 
Wings, the popular quality lOcent cigarette; Sir 
Walter Raleigh Smoking Tobacco, 15 cents and famous 
for Us mildness; Target, a genuine blended cigarette 



tobacco for 10 cents; Dial Smoking Tobacco, a 
smoother blend of Burleys for a dime — full I ^4 oz. to 
tin; Bugler, a blended cigarette tobacco for a nickel; 
and Golden Grain, the big S-cent bag of roll-your-own. 



11 



could be assumed that with similar weather couditioiis 
the 1934 crop would be about the same as the preceding 
one. In 1934, however, the month of January was one 
of the wettest on record — a condition unfavorable to 
the preparation of seed beds and tobacco fields, as well 
as unfavorable to the harvesting of paddy for the 
workers — which is a consideration of more importance 
than usual because of the increased price of rice. Over 
large areas of the growing section rain w^as recorded 
every day in January, and it was believed for a while 
that the crop would be adversely affected, but the 
month of February was unusually dry, with short but 
frequent rain showers — a most favorable condition for 
development of the young plants and it is now evident 
that the weather has had practically no ill effect. 

The Sumatra producers are still facing conditions 
that have seldom been worse. The demand for cheaper 
cigars and large unsold cigar stocks have a direct effect 
on the producers of the expensive Sumatra wrapper. 
The American market last year took only 30 per cent, 
of the amount of Sumatra tobacco imported in more 
favorable years, and the amounts taken by the German 
market w^ere similarly reduced. There is little reai?on 
to believe that these important markets will improve 
greatly in 1934. There has been some local agitation 
to take measures against the high tariff imposed on 
tobacco by the United States. Although the Dutch 
buy only about 5 per cent, of the total American ex- 
ports of non-manufactured tobacco, the producers are 
inclined to believe that a plan to raise the duty on 
tobacco imported into Holland might secure a more 
favorable rate on Sumatra tobacco imported into the 
United States. The local producers are also disturbed 
by the possibility of increased use of the cheaper Java 
wrapper tobacco, as illustrated by the tendency of t)ie 
German manufacturers to use as wrappers grades of 
tobacco formerly used as binders. 

On the brighter side of the picture is the large re- 
duction in stocks. According to figures published 
locally, the excess of world consumption of Sumatra 
leaf in. 1933 over sales in that year amounted to 37,000 
bales, which indicates that there are no more large 
stocks on hand to depress the market. Prices at the 
1934 sales are consequently expected to be higher than 
in 1933, provided that world consumption stays around 
the same level. Even if this should be the case, the 
producing companies can expect little profit, because 
they have less tobacco to sell. To the producing com- 
panies a substantial rise in price is particularly im- 
portant, to make up for their lower production and 
decreased reserves, and only a very modest dividend on 
capital stock can be expected at best. After several 
years of heavy losses it is to be expected that most 
of any profit made will be used to strengthen the finan- 
cial position of the producing companies. 

CANADA — Canadian tobacco production in the 
past five years has been featured by an increase in 
acreage of bright flue-cured tobacco, mainly in the 
largest tobacco region of Canada, in Southwestern On- 
tario. It is stated by American Consul D. C. Woods, 
in a report made public by the Tobacco Division, De- 
partment of Commerce, that the production of the flue- 
cured type was about 23,000,000 pounds in 1933 against 
8,500,000 pounds in 1928. This was offset partly by a 
decrease in production of dark tobacco. The 1933 
Burley crop was estimat^nl at 9,000,000 pounds. Total 
production of tobacco in Canada in 1933, of which 85 
per cent, came from Norfolk and P^ssex Counties on the 
shores of Lake Erie, is estimated at about 32,000,0f)0 
pounds, against 54,094,000 pounds in 1932. Drought 



li 



and high winds reduced the 1933 crop and impaired its 
quality. Prices averaged 16 cents a pound in 1933 
against an average of 11.3 cents in 1932, so that the 
return to farmers was $5,201,490 against $6,088,300 in 
1932, and $7,177,540 in 1931. About one-third of the 
Canadian crop is exported, practically all going to the 
United Kingdom. 

The reduction of the Canadian excise tax from $6 
to $4 per thousand has aided the demand for cigar- 
ettes, but their retail prices are still twice as high as 
for similar grades in the United States. Cigar con- 
sumption in Canada has dropped from 180,000,000 in 
1930 to about 114,000,000 in 1933. This has been accom- 
panied by a shift to the cheaper priced cigars. De- 
creases in the use of plug tobacco have been accelerated 
since 1930, but cut tobacco sales, until recently, showed 
n small increase. The Ontario tobacco trend favors 
further reductions in crops of Burley and cigar leaf, 
with more effort to produce varieties for the require- 
ments of the British market. Increased domestic ab- 
sorption of flue-cured is expected to be counter-bal- 
anced by a reduced export demand. 

ROTTERDAM— Conditions in the Netherland 
market for American leaf tobacco underwent no 
changes of any impoiiance during April, and a very 
quiet tone prevailed, with prices practically unchanged. 
American Vice Consul H. L. Rose advises that in the 
trade it is considered that inactivity still comes from 
excessive replenishment of stocks by both manufac- 
turers and the smoking public prior to the going into 
effect of the new Netherland excise law on April 1, 
1934. The dullness is also ascribed to the unfavorable 
general situation and the greatly reduced spending 
power of the public. 

As made public by the Tobacco Division, Depart- 
ment of Commerce, the report of the vice consul states 
that some transactions were made in Burley and Bright 
Virginia types. One contact alleged that during April 
United States firms had repurchased Bright Virginia 
tobacco from Netherland owTiers at a premium of $1.50 
per 100 pounds. There was little business in Kentucky- 
Tennessee varieties, but a fair demand existed for 
Seedleaf tobacco, which was offered at very cheap 
prices. Seedleaf is principally used as binder material 
for cigars and is competing against Java grades. A 
revival is not expected in the very near future by the 
men of the trade consulted. 

Total imports into the Netherlands of American 
leaf tobacco during March 1934 (figures for April are 
not yet available) aggregated 1,060,412 pounds, gross 
weight, valued at 226,000 florins. As against March, 
1933, a decrease by weight amounted to 3.2 per cent., 
but as compared with Febnmry, 1934, the weight im- 
port^^d declined by 59.3 per cent., principally because 
of heavy imports of Virginia and Kentucky tobaccos 
during February' of this year. The value dropped by 
24 per cent, as compared with March, 1933, and by 54.2 
per cent, as against February, 1934. 

YUGOSLAVIA— The State Monopoly of Yugo- 
slavia has concluded a special agreement with the 
French Tobacco Monopoly providing for the sale of 
Yugoslavia cigarettes in France, and of French cigar- 
ettes in Yugoslavia. Heretofore, foreign tobacco prod- 
ucts w^ere not on sale in Yugoslavia. Four brands of 
Yugoslav cigarettes are already on sale in France. 
The following French brands will be available in Yugo- 
slavia: Week-End, Oitanes-Maryland, Gauloises-Mary- 
land, and Gauloises-Caporal-Maryland. (iVmerican 
ConsulR. P. Clark.) 

Th€ Tobacco World 




Dealers say: 

El Producto appeals 
to my pocketbook — it 
always builds profitable 
quality business." 




"^ 



. «. ». CICA« CO. ,1 N C. ,F H I LA.,»A. 



EL PRODUCTO 

for real enjonmsmt 1 Q cents^ 



GERMANY— The Federal Ministry of Economics 
has decreed new regulations for the German cigarette 
industry to include those who had refused to join the 
toimer voluntary cartel agreements. All factories are 
included, prices are fixed and production regulated. 
The new agreement regulates the sale of cheap cigar- 
ettes which were tiie direct result of the crisis and the 
reduced public purchasing power. These cheap cigar- 
ettes account for 17 per cent, of total consumption. 
All advertising of these brands is prohibited. The 
erection of new cigarette factories, as well as the en- 
hirgement of existing plants, has been prohibited. 
(American Acting Commercial Attache Douglas 
Miller.) 

SWEDEN— The Swedish Tobacco Monopoly Com- 
pany has reported a net profit of 9,700,000 crowns for 
11)33, compared with 7,420,000 crowns for 1932. The 
l)oard of directors recommended a SVii per cent, divi- 
dend on both preferred and common stock, requiring 
1,650,000 crowns; that the earnings and price regulat- 
ing fund be increased by 2,000,000 crowns; and that 
0,040,000 crowns be added to the cash reserve. During 
iri33 the Monopoly delivered 73,660,000 crowns to tlie 
Stat<3 in the form of tobacco taxes compared with 72,- 
:>20,000 crowns in 1932. In addition, the State, as 
holder of the common stock, has received 1,590,000 
crowns in dividends for the year 1932 and 10,000,000 
crowns drawn from the reserves of the company, or 
altogether 85,250,000 crownis. Since 1915, when the 
Monopolv was established, the company has paid to the 
State in *the form of taxes, dividends, etc., a total of 
1,108,000,000 crowns. (American E. E. & M. P. L. A. 
Steinhardt) 

lunc 15, 1934 



CZECIIOSLOViUvlA— Kevenues of the Tobacco 
Monopoly of Czechoslovakia in March reached 147,- 
000,000 crowns compared wdth 156,000,000 crowns in 
^larch, 1933. During the first quarter of 1934, revenues 
amounted to 401,000,000 crowns compared with 418,- 
000,000 crowns during the first quarter of 1933. (Amer- 
ican Commercial Attache S. E. Woods.) 

CUBA — Figures furnished by the Cuban Tobacco 
Defense Conmaission show that exports of tobacco and 
tobacco products from Cuba during April, 1934, 
amounted to $967,272 as against $1,113,220 during 
April of the preceding year. Gains were registered in 
exports of cigars, cigarettes, and smoking tobacco, com- 
pared with April, 1933. Leaf tobacco suffered a de- 
cline. The decline in leaf was nearly 33 per cent. In- 
creases were: Cigars 28 per cent., cigarettes 88 per 
cent., and smoking tobacco over 200 per cent. During 
April, 1934, exports totaled 1,257,637 pounds of leaf, 
4,363,234 cigars, 4,533,257 cigarettes, and 41,167 pounds 
of smoking tobacco. Exports of tobaccos during the 
first four months of 1934 were valued at $4,574,501 as 
against $3,919,017 for the corresponding period of 1933, 
a gain in value of approximately 17 per cent. (Ameri- 
can Commercial Attache W. J. Donnelly.) 



John Flanigan, manager of the M. J. Dal ton stand 
at 617 Chestnut Street, has arranged an attractive win- 
dow display featuring appropriate gifts for Father's 
Day. Needless to say the front and center of the dis- 
play is occupied by cigars in popular shapes, sizes and 
prices. 




l)HIbADEl2«>MIA. 




MAY BAYUK'S PEAK MONTH 

[IC'CORDIXG to a statcnuMil ivcciitlv issued bv 
H. 8. liothschild, prosidoiit of Hayuk Cigars, 
Inc., shipments of cigars for the inontli of 
May were the largest for any month in the 
history of the company . . . You can't get within a 
block of that phice without sensing tliat ])ig business is 
going on . . . Joseph L. Sims, Bayuk sah»sman, is put- 
ting in some good work in the Peoria (111.) territory 
where sales of the company's Ijrands are supervised by 
the St. Louis branch office . . . AVagner «S: Surendorf, 
Logansport (Ind.) assisted by Bayuk salesman, ('. M. 
Bristow, recently comi)leted a successful drive for 
greater distribution and sales of Bayuk Phillies in that 
sector . . . Frank J. ]\Iiller, chief clerk of the Koches- 
ter (X. Y.) branch, is convalescing from an illness 
which caused his al»sence from dutv during the last 
several weeks. 




WILL & JENKS ON THE GO 

||S total cigar withdrawals continue to increase, 
they're fueling pretty good, thank you, up at 
G. H. P. head(puirters over the gratifying 
share of the bigger business that is coming to 
El Producto and La Azora . . . Frank P. Will, execu- 
tive vice-president, has left for a ten-day trij) ihrougli 
the Middle West . . . I). A, Jenks, assistant general 
sales manager, has just returned from a sales jaunt 
that took him as far as the Twin Cities . . . W. B. J^)in- 
sette, president of Myers-Cox <(>., distri])ut<>rs of 
G. H. P. brands in the DubuipU', Iowa, section, stopped 
at the factory on his way to the distributors' conven- 
tion in Washington . . . Sam Hirsch, lA' the Estate of 
J. X. Hirsch, resjK)nsil>le for the good showing of El 
Producto and La Azora in Atlanta, (Georgia, and there- 
a])outs, ran up from Washington after tlie convention 
and made a tour of Philadelphia under the capable 
guidance of Mr. Will. 



Jolin Wagner & Sons, local distril)utors, report a 
splendid business on Don Sebastian, (Jarcia y Vega, 
Monticello and their Wagner brand of cigars, particu- 
larlv in the Class C and 1). 



Joe Perez, of Marcelino Perez & Co., 'rampa manu- 
facturers, was a visitor at Yahn & McDonnell, local 
distributors, last week, and reported business increas- 
ing on his R-edencion brand. 



Trade Notes 



Benjamin Lumley, representing the Garcia y Vega 
factory in this territory, is now on a trip through West- 
ern Pennsylvania, where he is visiting the retailers and 
distributors in that section. 



James Heaney, representing the American To- 
bacco Comi)any, on their Antonio y Cleopatra brand, 
was in town last week visiting the local distributorof 
his brand. 



Ilei-man A])rams, recently appointed representa- 
tive for the Medalist factory, in this territor}', has been 
doing a splendid job on this brand here and sales are 
showing a fine increase. 



Yahn & McDonnell have taken on the new Julep 
cigarette for distribution here and an aggressive sales 
campaign will ])e waged on the brand soon. The Julep 
is Mint Havored and retails at twentv for fifteen cents. 



Jolin L. McGuerty, Komeo y Julieta representative 
in the Cnited States, was a recent visitor in Philadel- 
j»hia, and reported business increasing on his brand. 
J<»hn Wagner &: S(»ns, local distributors of Komeo y 
.Julieta, also report a fine increase in demand for this 
l)raiid, and are continuallv oversold on manv sizes. 



Abe Caro, ()i>timo representative, was in town last 
week and was highly pleased with the progress Optimo 
is niaking in this territory under the able guidance in 
distribution of Yahn & McDonnell. Abe stated that 
this increase was in line with what this brand is doing 
also in other sections of the count rv. 



14 



H. L. Bush, Col well Cigar Machine Corp. represen- 
tative, has also taken on the .1. W. Giles (of Philadel- 
phia) account, and is now accepting orders for both 
these houses, which include bunch machines and sup- 
Iilies, and also replacement parts for bunching and 
stripi)ing machines. 

Tk* Ttkaeeo WorU 




News From Congress 



_. 'AND 

F E D E R A L 

Departments 




LTHOUGH given the hearty support of the 
House Ways and Means Conunittee, consider- 
able doubt prevails as to whether it will be pos- 
sible to pass the tobacco tax reduction bill dur- 
ing the present session of Congress. Much depends, it 
is admitted, upon when the session adjourns. If it ends 
.June 16, it is practically impossible that action will be 
secured, but if Congress lingers on the tax bill and sev- 
eral other measures mav ''float with the tide" and be 
l>assed. As reported to the House of Representatives, 
the tax on light cigarettes would be cut from $3 to $1.80 
])er 1000, and on heavy cigarettes from $7.20 to $4.32 
per 1000; the levy on cigars weighing not more than 
three pounds per 1000 would be cut from 75 to 45 cents; 
on cigars retailing at not more than five cents each, 
from $2 to $1.20; on cigars selling at not more than 
eight cents, from $3 to $1.80; on cigars selling at not 
more than fifteen cents, from $5 to $3; on cigars selling 
at not more than twenty cents, from $10.50 to $6.30; and 
on more expensive cigars, fnuu $13.50 to $8.10. The 
tax on tobacco and snuff would be reduced from 18 to 
10.8 cents per pound. 

**We feel that this proposed horizontal reduction 
of 40 per cent, of the taxes on tobacco products will 
protect best the interest of the farmer, will save untold 
millions of dollars annually to the wage earners and the 
tobacco consumers of this country, will provide a 
proper and just return of revenues to the Treasury, 
ultimately making up for temporary decrease, all with- 
out any added profit per unit to the manufacturers," 
the conunittee held. 

Outlining the history of tobacco taxes, which were 
increased materially during the W^jrld War period, the 
nunittee in its report took the attitude that the pres 



CO 



ent tobacco taxes are prohibition taxes, the last increase 
— to present levels — having been made after ratification 
of the Eighteenth Amendment. Accordingly, now that 
prohibition has been repealed, the conunittee feels that 
the taxes on tobacco should be materially reduced. 



Cj3 Ct3 CJ3 

I^( )WKHS of cigar-loaf tobacco of the stemming 
irrades are assured of prices aptiroximately 
doubh* those of last s(»ason for 18,500,000 
I)ounds of their holdings of tobacco by a mar- 
keting agreenu-nt announce<l by the Agricultural Ad- 
justment A«lniinistration June 11th. Hloch l>rothers 
Tobacc*) Company, Liggett & Myers Tobacco Comi)any, 
I*. Lorillard Company and Scotten-Dillon Ccunpany are 
signatory to the agreement, etTective as of December 
1st, lastj and applying to tobacco produced in New 

June J5, 1934 




From our IVashington Bureau SiZAiBit Building 




York, Pennsylvania, Ohio, Indiana, Minnesota, Wis- 
consin, Connecticut, Massachusetts, New Hampshire 
and Vermont. 

^^O^m ^hA^ ^h^&^ 

CJ3 Cj3 CS3 

FFIXIXd his signature to the corporation 
bankruptcy bill. President Roosevelt this month 
paved the way for the release of numerous cor- 
porations from the hands of receivers. Under 
the act, all creditors will be bound to accept a court- 
approved plan of reorganization to which holders of 
two-thirds of the total amount of claims and of a major- 
ity of the stock have agreed. The legislation is ex- 
pected to save to industry numy corporations which 
otherwise would be forced to go through bankruptcy 
proceedings, in many instances eventually being put out 
of business with consequent increased unemployment 
and loss of investment. 

Any stockholder or creditor may file a petition for 
reorganization of a distressed corporation if backed by 
holders of 25 per cent., in amount, of each class of 
claims, amounting to 10 per cent, of the total; if the 
corporation is not actually insolvent but merely unable 
to meet its obligations, holders of 10 per cent, of each 
class of stock, and at least 5 per cent, of the total, must 
agree. A debtor corporation, however, may itself file 
a petition without securing the approval of creditors or 
stockholders. 

Plans of reorganization are to provide for the scal- 
ing down of the interests of both creditors and stock- 
holdeis to a point where the company can eventually 



( ( 



pay out 



> » 



Cj3 Ct3 Cj3 




AXl'FAlTURERR in the tobacco industry in 
need of additional capital will be able to satisfy 
their necessities in the near future through the 
Reconstruction Finance Corporation, which 
has been authorized by Congress to make loans direct 
to industry. Under the terms of the legislation, the 
corporation would be empowered to make advances on 
promissory notes, acceptances, rediscounts or other col- 
lateial, until January 31, 1035, to any established indus- 
trial or commercial business, to enable it to obtain 
working capital, reduce or refinance its outstanding 
indebtedness or make plant improvements or replace- 
ments. Such loans would run for periods as long as 
five vears. 



(Continued on Page 17) 






t$ 



Justice Calls for Tax Cut 



(Continued from Page 6) 



of any bill ^oiiii; tlirouiili coiiiiioss this year nor next 
year rcHliK'int»' the tax on tol)acc() pioducts oxcei)t the 
bill providin,i»- for the 40 ])er cent, horizontal rodnction. 
I base that statement n])()n statements made to 
me by members of the Ways and Means Committee, 
by other representatix is and Senators who have jj^iven 
the snbieet most earefnl stndv and have reaehed 
definite eoneliisions that the uradiiated tax would be 
injurious instead of beneficial to the tobaeco growers, 
liowever beneficial the manufacturers of the ten-cent 
cigarettes mav think it would be to tliem. 

WILL INCREASE CONSUMPTION 

There is no one — tobacco grower, smoker or 
chewer, manufacturer, ])ublic official — I have ever 
heard deny that a liorizontal reduction of the taxes 
would increase the consumi)tion ot' tobacco and would 
benefit both the grower and the consumer. 

From 191 J) till IILM) the use of manufactured cigar- 
ettes increased; from V.)2\) to IJKU the consumption of 
manufactured cigarettes has decreased, the consump- 
tion of roll-your-own cigarettes increased enormously. 

The tobacco growers have i)een largely inarticu- 
late. Now a bill representing their desire, their just 
demand is before Congress favoiably rei)orted by the 
Ways and Means Couuuittee. There is assurance 



given by such distinguished and influential Senators 
as Senator Barkley of Kentucky, Senator Byrd of Vir- 
ginia, Senator P.ailey of North Carolina, Senator 
Byines of South Carolina, Senator Goldsboro of 
^laryland, and others eciually interested in the wel- 
fare of the tobacco growers that the bill providing for 
the 40 per cent, horizontal reduction can pass the Sen- 
ate and that a bill ])roviding for the so-called grad- 
uated tax has no chance to pass either house of Con- 



gress. 



If we can make our voice audible, can make our 
conviction as to the injustice of the i)resent tax heard, 
can nuike our demand for the repeal of the fax de- 
nominated in the sub-committee report as "uncon- 
scionable" heeded by those in high i)osition this re- 
duction can and will be made at this session of Con- 
gress, so that the next cro]) will be sold to meet the 
increased demand. Kach of us can do something. It 
needs a thorough co-0])eration of all to do what is 
needed. 

The forprjnwfj is the text of an address on *'The 
Tohareo Tax/' delivered at the Thursday, June 10th, 
luHeheon meeting of the Lexingtrm, Kg., Uotarg Club 
bg C(d. Deaha Breekiuridge, editor of the Lexingtou 
Uerald, 



Growers Must Divide with Share-Tenants 




R()WP]KS of flue-cured tobacco who have 
signed adjustment contracts on which price- 
equalizing payments on the VXVA crop are being 
made, are instructed to divide these i)ayments 
with share-tenants or share-crop})ers, under the tenns 
of the contract regardless of tlel)ts or obligations due 
producers by tenants, according to a decision of the 
tobacco section announced today by the Agricultural 
Adjustment Administration. 

To date over $:i,051,l)57 in such payments have been 
disl)ursed to growers by the Administration. Contract- 
ing growers who marketed all or a i)art of their V.VM^ 
production before the marked increases in ])rice for 
this type of tobacco were eligible to apjily for price- 
equalizing payments. 

In a letter to all county agents in the flue-cured 
tobacco counties, J. B. llntson, chief of the tobacco sec- 
tion, has called attention to the fact thai \inder the 
terms of the contract, ])rice-equalizing payments are to 
be divided among ])roducers, share-t^Miants, and share- 
croppers, in the same proportion as the VXV.^ crop, or 
the proceeds of the cro]) were divi»led, and that such 
payments are not affected by the existence of any lien, 
mortgage or debt arising out of the production of the 



1J)33 crop, or othenvise. Such payments, tTie Instruc- 
tions stated, cannot be assigned, but mu^t be phiced in 
the actual possession of the tenant. 

"We also desire to advise landowners am! pro- 
ducers signing all kinds of toliacco contracts before 
tenants incur obligations, that the adjustment pay- 
ments to contracting producers, which will be made 
after the 1934 crop is sold, must be divided as the pro- 
ceeds of that croj) are divided, in the same manner as 
are the price-e(pializing payments," stated Mr. Hutson. 

** These instructions are issued because some land- 
buds who have been desigiuited as trustees to receive 
and distribute payments apparently have gained tlie 
impression that they may retain the tenants' share of 
payments for application on debts owing U) them by 
tenants. We want to correct that im])ression, as any 
such action on their part would violate the terms of the 
contract and th(» conditions ai' the trust. 'J'he failure 
of a landlord acting as tnistee to disburse to any tenani 
his respective share of payments, <*onstitutes grounds 
for recision of the contract, in which case the producer 
would be required to return to the Seeretary ot' Agri 
culture any payments made to him, as well as paying 
the costs incident to the collection thereof." 



Status of Tax Reduction Bill 



The \'inson Subcommittee Report — recommending 
a 40 per cent, horizontal iedn<'tion in Inteinal Revenue 
tax lates on all tobacco jnoducts, including cigars — 
having been approved by the H(M)se Ways and Means 
Committees the committee has now formallv submitted 
its rejKjrt to the House, recommending the j)assage of 

i6 



the Vinson Hill (II. R. 9441) providing for the 40 per 
cent, horizinital reduction. 

Xo <h'finite time has as yet been set for the lonsid- 
eration of this measure by the House, but steps to mov** 
this bill may be taken at any time. 

Thg Tobacco World 



News from Congress 

(Continued from Page 15) 



Hnactment of the legislation followed by the an- 
iionncement by Jesse II. .Jones, chairman of the R. F. 
( ., that the President ai)i)roved the ])lan and was par- 
ticularly desiious that "these smaller and medium 
>ized industries be given a full chance to survive on 
ecjual teiins with the larger industries." 

''There is undoubtedly a need of credit for small 
and medium sized industries,*' Chairman Jones ))oinled 
niit, "and while some of the loans will carry more than 
the usual ciedit risk, unless the demand is met our 
relief problems will continue to multii)ly. A (h)llar 
loaned is cei'taiidy better than one given in relief, and 
viich loans can be made with little ultimate loss." 




CIGARETTES COOL FINGER-TIPS 

MOKIXd one cigaiette will cool tiu" tempera- 
ture of the skin on your finger-tii)s by ten to 
twelve degrees. This and other similar cool- 
ings, due to smoking, are explained in one of 
the scientific exhibits set up for the eighty-fifth annual 
meeting of the American .\Iedical Association for five 
(lays, beginning June lllh. 

The cigarette exhibit shows the effects of tobacco 
smoking on the outer layers of the blood ciiculation, 
particularly those lying close to the skin. The tests 
were made by Hving S. Wright, A. Wilbur Duree, 
Jose])h Kovacs, Dean MotTat and Josej)h Wiener, of the 
New York Post-CJraduate .Medical School and hospital 
of the Cohnnbia University, 

It made no difference whether the cigarettes con- 
tained denicotinized tobacco. The effect was the same. 
But fake cigarettes nuule of ground filter pajK-r failed 
to produce the cooling. 

A young nuin smokinof a **standard brand" ciga- 
rette started with ;i finger-tip temperature of 92. This 
temperature dropped ten degrees in fifteen minutes 
while he was smoking one cigarette. After he stopped, 
the skin dropped a further two degrees in three min- 
utes. Seven minutes later it was again at 92. 

A denicotinized cigarette produced a similar drop 
and rise, although sliglitly slower. A mentholated cig- 
aiette caused a slower fall in finger-tii) temperature, 
l>nt the cooling effect was still strong, at HO degrees, for 
a lull hour and forty minutes. 

Physicians stated that during smoking the flow of 
l>lood in the capillaries is fre<|uently slowed (lown, or 
even stopped. This accounts for the skin cooling. 




GROWERS' AGREEMENT APPROVED 

ROWHRS of cigar-leaf tobacco of the stemming 
gratles are assured of prices ap])roxinuiteIy 100 
per cent, higher than prevailed last season for 
1 S,r)0O,( K M I pounds of their holdings of* tobacco 
bv a marketing agreement which has been signed by 
.\Vting Secretary of .\griculture R. (i. Tugwell. Bh)ch 
lirothers Tobacco Company, Liggett & Myers Tofmcco 
Company, W Lorillard Company, and Scotten-Dillon 
Companv are signatory to the agreenjent, which be- 
cniiK.s effective as of I)ecend)er 1, VXV^. These com- 
panies nuinufacture sr> to !Ml per cent, of the scrap 
eliewing tobacco, for which the stennning grades of lo- 
l)acco covered by the agreement are utilized. The 

{Cnntinmd <ni Scxt Page) 

June 75, 79.?/ 




U. S. BOND 



CIGARS 




CIGARS 



P. LORILLARD GO'S 

Quality 

2 '- 5^ 

Cigars 

Meeting the public's demand 
for quality cigars 
moderately priced 



NEW 

CURRENCY 

CIGARS 




2 

for 
5c 



Our Other Popular 2 for 5^ Cigars 
JAMES G. BLAINE • • POSTMASTER 
LA FRAOSA • SARONA • WAR EAGLE 




TOBACCO TRADE ORGANIZATIONS 

TOBACCO MERCHANTS ASSOCIATION 
OF UNITED STATES 

JESSE A. RLOCH. WlieeUnR. W. Va President 

JLLIIS LICHTENSTEIN, New York. N. Y Vice President 

WILLIAM BEST. New York. N. Y Chairman Executive Committee 

MAJ. GEORGE W. HILL, New York, N. Y Vice-President 

GEORGE H. Hl'MMELL. New York. N. Y Vice-President 

n. H SHELTON. Washington. D. C Vice-President 

WILLIAM T. REED. Richmond. Va Vice-President 

HARVEY L. HIRST, Philadelphia, Pa Vice-President 

ASA LEMLEIN. New York. N. Y Treasurer 

CHARLES DUSHKIND. New York. N. Y Counsel and Managing Director 

Headquarters. 341 Madison Ave., New York City 

RETAIL TOBACCO DEALERS OF AMERICA, INC 

WILLIAM A. HOLLINGSWORTH. 233 Broadway New York, N. Y President 

CLIFFORD N. DAWSON. Buffalo, N. Y Executive Vice President 

JAMES C. THOMPSON. Chicago. Ill Treasurer 

ASSOCIATED CIGAR MFRS. AND LEAF TOBACCO DEALERS 

JOHN H. DUYS, N"ew York City President 

MILTON RANCK. Lancaster, Pa First Vice-President 

I). EMIL KLEIN. New York City Second Vice-President 

LEE SAMUELS. New York City Secretary -Treasurer 

NATIONAL BOARD OF TOBACCO SALESMEN'S 

ASSOCIATIONS 

ABE BROWN. 180 Grumman Ave.. Newark, N. J President 

ALBERT FREEMAN. New York. N. Y First Vice-President 

IRVEN M. MOSS, Trenton, N. J Second Vice-President 

A. STERNBERG. Newark. N. J Secretary 

RETAIL CIGAR STORE ASSOCIATION OF PHILADELPHIA 

MORRIS LEVITON E President 

SAMUEL MAGID. 2001 N. Mervine St., Philadelphia. Pa Secretary 

THE NATIONAL ASSOCIATIONS OF TOBACCO 
DISTRIBUTORS, INC. 

E ASnURY DAVIS, Baltimore. Md President 

JOSEPH KOLODNY, 200 Fifth Ave., New York. N. Y Secretary 

GEO. B. SCRAMBLING, Cleveland, Ohio Treasurer 

UNITED STATES TOBACCO DISTRIBUTORS ASSOCIATION 

JOHN F. BROWN President 

HERMAN H. YAFFE, 301 Fox Building, Philadelphia, Pa SecreUry 

17 



Esmblithed 1886 



"BEST OF THE BEST" 




'*"•'•"-"' *■' A. SANTAELLA & CO. 

Office, 1181 Broadway, New York City 

FACTORIES: Tampa and Ktp West. Florida 



OUR HIGH-GRADE NON-EVAPORATING 

CIGAR FLAVORS 

Make tobacco meHow and smooth In charact«» 
and Impart a most palatable flavor 

FUYORS FOR SMOKING and CHEWING TOBACCO 

Write for List of Flavors for Special Brands 
BKTUN. AIOMATIZEI. BOX FLAVOBS. PASTE SWEETENEIS 

FRIES & BRO., 92 Reade Street. Ne^ York 



';'v»;rA»A'lV»A'lV»>^NVf«tV8«y»'U808W^^ 



■^ 



Olassified Column 

The rate fot this column is three cents (3c.) a word, with 
a minimum charge of seventy-five cents (75c.) payable 
strictly in advance. 



uirririr«flrfSflrrixirritir7iflfr*>citi«v^^^^ 



POSITION WANTED 



CIGAR SALESMAN COVERING E.VSTERN PENNSYLVA- 
NIA and Local Territory desires connection. Large following. 
Address Box No. 580, "The Tobacco World." 

Newspaper and magazine advertising executive, thoroughly 
experienced, formerly with local newspapers and agencies, and also 
advertising manager. Position with firm desiring an advertising man, 
salesman or assistant to manager. Knows marketing, merchandis- 
ing and distribution. Salary not as important as opportunity to 
demonstrate actual worth and ability. References the highest. 
Address, F. H. Riordan. 5915 Webster Street, Philadelphia, Pa. 



CIGAR FOREMAN HAVING 13 YEARS' EXPERIENCE ON 
Automatic Machines, wants a position. Also instructs beginners. 
Address Box No. 558, "The Tobacco World." 



FOR RENT 



OFFICE AND FLOORS FOR CIGAR MANUFACTURING OR 
STORAGE — No parking restrictions; good location; low rent; 
freight elevator and loading platform. Will divide. Metals Coating 
Company of America, 495 North Third Street, Philadelphia. 



HAVANA CIGARS 



BEER WITHOUT CIGARS. IS LIKE KISSING WITHOUT 
LOVE — Adopt as your slogan, "Kiss your beer, but love your ci- 
gars." Specially those Havana blended, "Good to the last Puff," 
manufactured by A. Ramirez & Co., Post Office Box 1168, Tampa, 
Fhu Write them for particulars today. 



Tobacco Merchants' Association 
Registration Bureau, NEw^Yo^"cm 

Schedule of Rates for Trade-Mark Services 
Effective April 1, 1916. 



Registration, (see Note A), 


$5.00 


Search, (see Note B), 


1.00 


Transfer, 


2.00 


Duplicate Certificate, 


2.00 



Note A— An allowance of $2 will be made to members of the Tobacco Mer- 
chants' Association on each registration. 

Note B— If a report on a search of a title necessitates the reporting of more 
than ten (10) titles, but less than twenty-one (21), an additional charge of One 
Dollar ($1.00) will be made. If it necessitates the reporting of more than twenty 
(20) titles, but less than thirty-one (31), an additional charge of Two Dollars 
($2.00) will be made and so an additional charge of One Dollar ($1.00) will be 
made for every ten (10) additional titles necessarily reported. 



NEW REGISTRATIONS 

3 BAGGER: — 46,334. For all tobacco products. Harvev's. Syracuse 
X. v.. Mav 28. 1934. • » ^ . 

THINETTE:— 46,338. I'or cigarettes. Humath Co., Ii«^ N«w 

\ ork, N. Y., June 7, 19J4. 



RENEWAL REGISTRATION 
GOLD COAST:— 46,337. Vor cigars. Registered Mav 31, 1934, by 
Consolidated Litho. Corp., Brooklyn, N. Y. (Originally registered 
on .August 9, 1902. by .Schmidt & Co., New York, N. Y., predeces- 
sors tu Consolidated Litho. Corp.) 



TRANSFERRED REGISTRATIONS 

JUDGE GEORGE H. DURAND:— 25,787 (Tobacco Leaf). For 
clgar^, clurotUs and cigarettes. Registered July 19, 1903, by Abe 
Davis, I'lint, Mich., and renewed on May 25, 1925 (Tobacco Mer- 
chants' Association Certificate \o. 44,241). Transferred to Havana- 
Detroit Cigar Mfg. Co., Detroit, Mich., June 8. 1934. 

CRESTWOOD:— 28,147 (Trade-Mark Record). For cigars, ciga- 
rettes and tobacco. Registered March 17, 1903, by Heywood- 
Strasser Litho. Co., New York, N. Y. Transferred to Wni. R. 
Wollaston. Dayton, Ohio, and re-transferred to Consolidated Litho 
Corp., Brt)oklyn, N. Y., May 28, 1934. 

O'PAT:— 26,669 (United States Tobacco Journal). For cigars, che- 
roots and cigarettes. Registered February 25, 1903, by Wni. Steiner 
.Sons & Co., New York, N. Y. Through mesne transfers acquired 
by Consolidated Litho. Corp., Brooklyn, N. Y.. and re-transferred 
to the Brown Cigar Co., Quincy, Fla., May 29, 1934. 



{Cuvthmed From Preceding Page) 
ai»:rceinont applies to tobacco produced in New York, 
l\'nii.sylvaiiia, Ohio, Indiana, Minnesota, Wisconsin, 
( onnecticut, Ma.ssaehusett.s, New Hampshire and Ver- 
mont. 

The difTerential of one-half cent per pound in the 
price of tobacco i)urchased from growers as compared 
with that purchased through cooperatives represents 
the saving to })uyers in dealing with cooperatives. The 
(litTerentials ba.sed on age and method of storage are 
to compensate for loss in weight through storage. 

Inder the agreement the contracting firms must 
purchase the following amounts before June 30: Blocli 
Brothers, three million pounds; Liggett & Myers, four 
million pounds; P. Lorillard Company, seven and a half 
million pounds; and Scotten-Dillon Company, four niii- 
loan pounds. According to Tobacco Section officials, 
the aggregate amount called for in the agreement is 
somewhat larger than the 1933 production of these 
grades, and should act to bring about a larger volume 
nf purchases than would have been possible without the 
agreement. 

Deficiency payments of two cents per pound in the 
( ase of purchases below the specified amount are called 
for under the agreement. Buyers must purchase in the 
usual manner, and refrain from disproportionate buy- 
iugs of the highest grades. 



i^&i 



JULY 1, 1934 




COMMON SENSE 



The importance of attractive and dependable containers for 
fine cigars is recognized by the progressive cigar manufacturer. 

Generally the brands that are increasing their goodwill in this 
present analytical market are packed in the new improved 
AUTOKRAFT cigar boxes. 

Cigar Manufacturers who have not investigated the value of 
the merits and economies of the splendid and inviting package 
may obtain complete details promptly by addressing the 

AUTOKRAFT BOX CORPORATION. 




Phi la., Pa. 
Hanover, Pa. 
Cincinnati, Ohio 



AUTOKRAFT BOX CORPORATION ^5""^"^,?, 

Chicago, III. 
Lima Ohio Detroit, Mich. 

A NatioixWide Service Wheeling, W. Va. 



m I I n 





n 



m^m 




f^UBLISHED ON THE 1ST AND 15TH OF EACH MONTH AT 236 CHESTNUT ST.. PHILA.. PA, 



After 
jiothtng 



all 
satisfies lihe^ 



a good cigar 



WOODEN BOXES 

Are the Only Natural Humidor for Cigars. 



Pack your cigars in wooden boxes and preserve 
their delicate aroma, mellowness and flavor 
right up to the time they are passed over the 
counter to the customer. 

Discriminating cigar smokers prefer to select 
their favorite brand from a wooden box— and it's 
good business to cater to the dealer and con- 
sumer by packing your cigars in wooden boxes. 




WHEN BUYING CIGARS 

tmcmber that Rcgjrdlcu of Pri€« 

THE BEST CIGARS 

AKZ FACKID IM 

WOODEN BOXES 




. 




THE TOBACCO WORLD 



Vol. 54 



JULY 1. 1934 



No. 13 



Provisions of Wholesale Code 

Not Contained in Manufacturers' Code 




EING, in the main, identical in phraseolojify 
with the Code of the Oi<!:ar Manufacturint!: In- 
dustry, as |3rinted in full in the May 1st issue 
of The Tobacco Wokld, the Wholesale Code is 
not reprinted at this time. The foUowinii^ paras^raphs, 
however, are rein-odueed from the Wholesale Code ])e- 
cause they do not appear in the Manufacturers' Code: 

Article II— Definitions 

Section 4. The term "tohaceo products" includes, 
without limitation, all cigars, sto«;ies, cheroots, little 
cigars, cigarettes, smoking tobacco, chewing tobacco 
and snuff. 

Section 5. The term *' wholesale tobacco trade" 
means and includes all selling and distributing of to- 
bacco products at wholesale. 

Section 6. The terms * 'wholesale tobacco dis- 
tributor," "wholesale distributor" and "member of 
the trade" mean any person engaged wholly or par- 
tially either as an employer or for his own account, in 
the wholesale tobacco trade. 

Section 7. The term "wholesale tobacco estab- 
lishment" or "establishment" means any ])lace of 
wholesale business at which more than one-lialf the 
dollar volume of the sales made consists of tobacco 
products, or at which the principal line of business is 
tUe sale of tol)acco products. 

Section K. The terms "tobacco retailor" anrl "re- 
taller" mean any ])erson engaged wholly or partially 
for his own account, in the selling of tobacco jiroducts 
directly to the consumer and not for ])urposes of resale 
in any form. 

Section It). The term "tobacco manufacturer" 
means and includes any person engaged in the manu- 
facture of cigarettes, smoking tobacco, snuff or tobacco 
products other than cigars, and the distributinn there- 
of, exclusive, however, of distribution by wliolesale 
distributors or retailers. 

Article VI — Prices 



i ( 



As to cigars, with respect to which the provisions 
of Part I or Schedule 1 shall not at the time hv oper- 
ative or shall be stayed, and as to cigarettes, smoking 
tobacco, chewing tobacco and snuff, the standards of 
fair competition for the trade with reference t<' pricing 
practices are declared to be as follows: 

"Section 1 (^) : Wilfully destructive price cutting 
is an unfair method of competition and is forbidden. 
Any member of the trade or of nny otluT trade or 
industry or the customers of either may, at any time, 
complain to the Code Authority that any actual price 



constitutes unfair competition as destructive price 
cutting, imperilling small enterprises or tending 
toward monopoly or the impairment of code wages or 
working conditions. The Code Authority shall, within 
five days, afford an opportunity to the member making 
such price to answer such complaint and shall, within 
fourteen days, make a ruling or adjustment thereon. 
If such ruling is not concurred in by either party to 
the complaint, all papers shall be referred to the Re- 
search and Planning Division of NRA which shall 
render a report and reconunendation thereon to the 
Administrator. 

"(6): When no declared emergency exists as to 
such products or any specified part thereof, there is 
to be no fixed minimum basis for prices. 

"It is intended that sound cost estimating methods 
should be used and that consideration should be given 
to costs (including costs of w^holesale distribution) in 
the determination of pricing policies. 

"(c): When an emergency, by reason of unfair 
competitive practices or other conditions, exists in the 
trade as to such products or any specified part thereof, 
sale below the stated minimum price of such products 
or such specified part thereof, in violation of Section 2 
hereof, is forbidden. 

"Section 2. Emergency Provisions. — (a) : If the 
Administrator, after investigation, shall at any time 
find both (1) that an emergency has arisen within the 
trade, adversely affecting small enterprises or wages 
or labor conditions, or tending toward monopoly or 
other acute conditions which tend to defeat the pur- 
poses of the Act: (2) that the finding of a basis for 
determining minimum prices for such products or any 
specified part thereof is necessary for a limited period, 
to correct the conditions constituting such emergency 
and to effectuate the purposes of the Act, the Code 
Authority may cause an impartial agency to investi- 
gate costs (including the costs of wholesale distribu- 
tion) and to recommend to the Administrator a basis 
for determining minimum prices of the said products 
or the said specified part thereof affected by the 
emergency, and thereupon the Administrator may pro- 
ceed to fix a basis for determining such minimum 
prices. 

"(6) : When the Administrator shall have fixed a 
basis for determining mininmm ])rices for the said 
products or said specified i)art thereof for a stated 
period, which prices shall be reasonably calculated to 
correct the conditions of such emergency and to 
effectuate the purposes of the Act, he shall publish 
the said basis. Thereafter, during such stated period, 
no member of the trade shall sell such products at a 

(Continued on Last Page) 



The TOBACCO WORLD (established 1881) is published by Tobacco World Corporation; Hobart B. Hankins, President and Treasurer; 
Gerald B. Hankins, Secretary. Office, 236 Chestnut Street, Philadelphia, Pa. Issued on the 1st and 15th of each month. Subscriptions, avail- 
able only to those engaged in the tobacco industry, $2.00 a year, 20 cents a copy; foreign, $3.50 a year. Entered as second-class mail matter, 
December 22, 1909, at the Post Office, Philadelphia, Pa^ under the Act of March 3. 1879. 



Goin' Places and Seein' Things 

When You've Watched Them Make This Cigar, YouVe 

Been Somewhere and Seen Something 



By JOHN CLEARY 




OF toll tliom yon want to see how good cigars 
are inado — and thoy tako you to the boiler- 
room in the sub-basement! It's one of those 
torrid days in June, and as you mop your 
forehead, you say to yourself: Well, I guess 
I've let myself in for one of those *' complete" 
tours of inspection. They're going to show me 
everything in the building, whether it has anything 
directly to do with cigar-making or not. And, priding 
yourself on being something of a philosopher, you 
shrug your shoulders, and think: I can't say I didn't 
ask for it. Let them shoot the works ! 

Your guide, who is no salesman but knows his 
cigars (as well as his tobacco and his building) and is 
some shakes as a psychologist himself, has read your 
unuttered thoughts, and you realize how close you came 
to revealing your own sappiness when he says : 

"We didn't bring you here first just to show you 
these three huge oil-burning units, although w^e are 
proud of them. Nor because it is convenient to start 
from the bottom and work up. Not at all. If you want 
to know all about the making of good cigars, you must 
learn at the very beginning that, given good ripe to- 
bacco and masterly skill in blending it, the most im- 
portant single factor in cigar manufacture is the con- 
stant, unvarying maintenance of the scientifically 
correct temperature and humidity in all stages of the 
process of preparing the tobacco for the smoker,*' 

Paradoxically enough, you hadn't expected to hear 
anything about the smoker at all on this trip through 
a cigar factory. Here you are, hearing about him, 
down in the bowels of the earth. And you keep hearing 
about the ultimate smoker all along the line, until you 
finish the tour on the roof, yes, literally on the roof, 
where . . . but don't let's get ahead of ourselves. 
We're still two floors below the street level. 

Manuf acturijig the Weather 

This temperature and humidity idea intrigues you. 
You'll have more regard for your cigar now, you think, 
since you realize that to manufacture it, the proper 
weather had to be manufactured. The entire building 
is insulated with a two-inch-thick cork lining. You'd 
break your arm trying to open a window — every win- 
dow in the building is stationary and double-sashed. 
The purpose of all this is to maintain in every step of 
the process through which the tobacco passes, the 
proper atmosphere for that particular step, regardless 
of the state of the weather outside, and regardless of 
the atmosphere required for other steps in the process. 

You notice that on this second official day of sum- 
mer only one of the three oil burners is w^orking, and 
your guide explains that is just enough to keep the 
sweat rooms at the right heat, but, as the fellow says, 
we '11 come to them later. And how ! 



Up a flight of stone steps you come to the base 
ment, where is located the miraculous w^eather-making 
machinery and equipment for the lower half of the 
building. The entire unit is duplicated on the ninth 
floor to take care of the upper half of the building. 

You see what looks to your lay mind like an orderly 
array of dynamos and registers and gauges and 
gadgets, and you marvel how they can bring in the air 
from the outside through ducts, wash it (in water, too — 
none of your complexion creams for this air-washing 
process) and then distribute it to the various parts 
of the building at exactly the proper temperature and 
with precisely the correct amount of humidity for each 
spot. A gauge set at the unit provides for the building 
generally, while others must be set at individual spots 
for individual weather needs. For summer, naturally, 
the apparatus was set largely for cooling and dehumid- 
ifying, fulfilling the function of a refrigeration ma- 
chine. It would have a capacity of 100 tons of ice 
daily, if used for that purpose. No wonder you think 
it's miraculous. 

You enter the first floor from the enclosed truck 
loading and unloading platform, just below the freight 
train platform, which is on the second floor level, beinu 
a spur of the elevated Reading Kailway tracks. 

Conditioning the Ripe Tobacco 

If you're lucky, you 11 see the cases of tobacco 
sliding down the chute to the scales on the first floor, 
where they are weighed and placed three and four high 
on the floor by one of the two shifts at work in this 
busy plant. 

How this particular shipment of tobacco got here 
is a story in itself. It is sufficient now to know that the 
numagement didn't simply send out wires here, there 
and everywhere, regardless, saying, **Ship us so many 
pounds of tobacco at once." No, these people knew 
this tobacco from its seedlet days. They select much 
of the leaf personally, and always only those leaves 
which grew on the middle of the plant, not the under- 
ripe, bitter, youngest leaves from the top, nor the over- 
ripe oldest "sand" leaves nearest the ground — only tin- 
ripe leaves from the middle of the plant. 

So this tobacco as it comes ofT the cars — the Su- 
nuitra wrapper after a voyage from Amsterdam, the 
Havana leaf from Cuba and the domestic from Con- 
necticut and Pennsylvania — is not an unknown quan- 
tity. They know it, and they know, too, that it is in the 
proper condition to go through their processes of 
manufacture. You wonder, therefore, at the meticulous 
care used in these processes, but your wonder ceases 
when you learn how delicate a growth the tobacco leaf 
is. The prepared leaves, themselves, are exceedingly 
hygroscopic, which is a high-hat way of saying tliat 
they readily absorb and retain moisture, that they are 

Th4 Tobacco World 



highly sensitive to the minutest variation in the mois- 
ture content of the surrounding air. (Now you begin 
to get the importance of this '* manufactured weather" 
business). Moisture affects the leaves both physically 
and chemically. Leaves that are too dry, or brittle, 
break and fly away as dust. Limp and weak leaves — 
the too-moist ones — tear and stretch. When they are 
too dry or too moist, they undergo detrimental chemi- 
cal changes also. They lose flavor, aroma and smoking 
([uality (here's Old Man Smoker himself entering the 
picture again). It is too-dry or the too-moist leaf 
which molds and decomposes. But you'll be wanting 
to get back to that case of ripe tobacco which just came 
(lowTi the chute and off the scales — 350 pounds it was. 

These hands of tobacco (and a ''hand," if you 
nmst have every term defined, is a bundle of twenty- 
five to forty leaves tied together at one end) are dipped 
in water and allowed to stand on a board for a suffi- 
cient length of time to become pliable before going back 
into their original case for curing in the sweatroom. 
This preliminary, or conditioning, operation is called 



' ' casing. ' ' 



<< 



It's Not the Heat; It's the 



ft 



There are five double-decked sweatrooms. Each 
has a capacity of 120 cases. And each of them is filled 
the afternoon you are there. The temperature is rather 
])leasant on this floor, so, expecting some rise in tem- 
perature in a place called a sweatroom, and preparing 
yourself for it, you follow your guide as he nonchal- 
antly strolls into one of the five. Whew! It's hot as 
the hinges of the bad place, and you're glad you let 
the door ajar, as you duck out, anything but nonchal- 
antly. Right here, you think, is where they originated 
that wisecrack: **It's not the heat; it's the humidity." 
The leaves are left in the sweatrooms the proper length 
of time to ferment, a period w^iich varies according to 
the nature of the leaf and the type of tobacco. The 
cases are inspected daily. You leave that floor with 
the thought that, while in social intercourse, "sweat" 
may be an inelegant word, the guy who christened those 
rooms certainly knew his Anglo-Saxon. 

What a contrast when you enter the first room on 
the floor above, where the wraj)per leaves are condi- 
tioned by the company's own patented humidifying de- 
vice. They are put in dry and come out pliable, retain- 
ing their original color after their air bath in that 
pleasant, breezy room. 

A Colorful, Busy Scene 

It is a busy colorful scene that greets your eyes in 
the stripping room, which occupies all of this commo- 
<lious second floor, with the exception of the space de- 
voted to the wrapper-conditioning room and the stor- 
age room for stripped wrappers. Four hundred young 
women, each attired in a blue smock with white collar 
and cufTs, a blue cap trimmed with white, and a blue 
apron, also with white trim, are engaged, each at her 
own machine, in removing the heavy stem from the 
center of each leaf. (Your guide tells you the girls' 
neat uniforms are of Indian Ilead material, and, being 
no expert in dress fabrics, you take his word for that, 
considering it an act of graciousness that the manu- 
facturer should pay this honor to the vanished race of 
• igar store Indians.) 

As the machine clips the center stem from each 
leaf, each half-leaf is allowed to revolve on a roller 

J^h I, 1934 



until a sufficient number have been stripped, when the 
operator removes them, and books them into pads, al- 
ways making separate piles of the right and left halves. 
Incidentally, the leaves have been inspected before 
being turned over to the operator for stripping, and 
they are inspected after stripping. You notice 
this check and double-check system throughout the 
plant. On some operations there is a triple check. 
Another thing you notice here and everywhere else 
throughout the building is the absence of noise or, in 
fact, any audible evidence of the big production being 
turned out. Your guide never has to shout to be heard 
over the din of machinery or chatter. You carry on 
your conversations in an ordinary tone of voice. 

Wrappers are stripped at one end of the floor, 
binders in the center and filler tobacco at the other end. 
Beside the center section there is a storage room for 
the binder leaves, equipped with special humidifying 
apparatus and appealing to you as a perfect place to 
spend a hot afternoon. You notice that there is no 
noisy trucking or back-tracking. The progressive con- 
veyor system is used throughout, the receptacles going 
out full and coming back empty, with automatic pre- 
cision. 

On the way up to the third floor, you pass, on a 
mezzanine, the locker rooms and cafeteria for the sec- 
ond-floor w^orkers. To the highly important function 
of drying the filler leaves, or rather half -leaves, is de- 
voted practically the entire third floor. And it's here 
you get one of the biggest surprises of the trip. 

Heaven to Hades in 100 Yds. 

The tobacco, hung on racks, enters one end of the 
drying room, where it is exceptionally hot, and then 
travels, by gradual stages, through gradually lessening 
temperatures, to the other end, where it is pleasantly 
cool. Your guide has explained this to you before you 
enter from the cool end, and although there are no 
partitions in the room, you feel, with every few feet 
you walk, a perceptible rise in the temperature, until 
it gets so damned hot that vou run the last several feet 
to the heavy exit door, w^ere you fumble with the knob 
when your guide calmly completes his walk and quietly 
opens the door for you. You have walked from heaven 
to hell in less than a hundred yards, but somehow or 
other, you feel better than when you entered the room. 
You are about to say something about this feeling, when 
your guide, again sensing your thought, remarks: 
**That sure does clear your head, doesn't it?" That 
was it. Your head felt clearer than it had at any time 
since vou were a bo v. The excess moisture extracted 
from the tobacco by this drying process seems to be 
just the thing to make your head clear as a bell. 

A locker room for the girls working on the fifth 
and sixth floors and the main dining room, with a 
kitchen equipped to feed an army, complete the layout 
of the third floor. 

The fourth floor is given over entirely to the stor- 
age of tobacco in open bins, completing the process 
which puts it into the proper condition for being fabri- 
cated into the complete cigar for the smoker. You see 
the Havana leaf, which comes in bales instead of cases, 
at one end the binder and filler occupying the remain- 
der of the huge bins on the floor. Your guide esti- 
mated there were about fifty carloads of tobacco in the 
storage bins when you passed through. 

And now, on the two floors above, you come to 
what you thought they were going to show^ you first, the 



tobacco beinj? made into dinars. Your eye is first 
caui>lit bv the ariiiv of uiuforinod <»irls as you step olT 
the elevator at the lit'th floor. Tlie color scheme here 
is gray and white, for the smocks, caps and aprons of 
the operators, and you assume that, with equal a]jpro- 
priateness, their material is also Indian Head. There 
are four iiirls in attendance on each machine. And 
what machines ! 

They don't call them human machines. They call 
them superhuman machines. And when you see them 
operate, you think that descriptive title is no exagger 
at ion. 

The first girl feeds an amount of filler into a tray. 
A part of the machine reaches out and takes exactly 
enough of it to make one cigar, cuts off l)oth ends to 
make it the proper length, shapes it and slides it under 
a sort of rubber apron. In the meantime, the second 
girl has s])read out a single binder half-leaf on a per- 
forated aluminum dingus, which by some sort of suction 
hocus-pocus, is transferred to that same apron ,inst in 
time to meet the rolled filler as it arrives there. The 
machine wrai^s the filler securely in the binder leaf, 
and then transports the now nearly completed cigar to 
be enveloped in the wrapper, which has been sjiread 
over another perforated aluminum dingus by the third 
girl, and carried thence by another ]iresto-changeo suc- 
tion operation. The final touches, rounding the ends 
and so on, are performed by the fourth girl, who re- 
ceives each cigar from the machine and inspects it be- 
fore she places it on the pile, to be conveyed to the 
]iacking room, which, you think, is on the floor above, 
since all the progress has been ui^ward, from one floor 
to another. Well, you're wrong again. 

The Right and Left of It 

But before you learn how and why you're wrong, 
you pay a visit to the antiseptically clean and well- 
appointed dispensary, with its ])rivate sleeping cham- 
bers for the sick or injured and everything else re- 
quired for the emergency ward of a hos])ital. Doctor 
and nurses are always in attendance. A])])licants for 
employment must pass a i)hysical examination before 
they are accepted, and they undergo ])eriodic examina- 
tions thereafter. 

And now, on that vast expanse of sixth floor, where 
you ex])ected to see the packing department, you gaze 
Instead upon a replica of the fifth floor, another army 
of gray-clad operators manning cigarmaking machines, 
wnth conveyors feeding tobacco at one end and other 
conveyors carrying away finished cigars at the other 
end. It is not an exact replica, however. Here the 
machines are precisely the reverse of those on the floor 
below. The answer is'that the fifth floor nuikes **riirht" 
cigars and the sixth floor makes *Meft" cigars. You 
remember, then, how the strip]^ers kept the two halves 
of the leaves se])arated when booking them into ])ads, 
the right halves in one pile, the left halves in another. 
If you gave the matter any thought at all, you ])robably 
imagined in your ignorance tliat, in making the cigars 
the right half of the leaf was fed into the machine one 
side up, and the left half of the leaf the other side up. 
On a little reflection, you would have realized that only 
the smooth, imveined to]) side of the leaf is used for the 
outside of the wra])i)er, and you feel ashamed of your- 
self for not having adverted to that. (You don't feel 
so peeved at yourself, however, when you discover* that 
there's many a man engaged in selling cigars for vears 
who is also unaware of this fundamental fact of cigar- 
making.) 



Anyway, that 's why there are right and left cigar- 
making machines, and why there are right and left 
cigars, and why thei'e are two conveyors, one from the 
fifth floor and one from the sixth, leading to the packing 
de])artment on the eighth floor. 

Before making vour wav there vou note the men's 
locker room above the disj)ensary, and you make a tour 
of the seventh floor. In the front is the attractive big 
rece])tion foyer, flanked by the private and general 
ofiices of the conq)any. In the rear is the machine shop 
for the maintenance of the building's machinery and 
equipment. And in the center of this floor, you get 
ahead of the ])rogressive movement through the ])laiit 
for the first and only time. Here all box goods, packed 
on the floor above, are stami)ed, ])acked into cartons, 
and the cartons metal-stitched and chuted below to the 
train ])latfoiin for shipment or to the truck ])latform 
for haulage. 

Inspect ! Inspect ! ! Inspect ! ! ! 

Following the loose cigars on the conveyors to the 
eighth floor, you see them delivered to the keen-eyed 
young women who sort them according to shading and 
color under s])ecial lights that never vary, and press 
them in "shells." Kach of the cigars in each shell then 
goes through the hands of an inspector, who re])laces 
them and ])uts them on the conveyor, to be borne to the 
machines for cello])haning and banding. One machine 
])erforms both of these operations, and the girl attend- 
ing it packs the cigars in a box, drives a nail in the lid 
and ])uts it on the conveyor to journey to the final in- 
s]>ector, who j)ulls the nail out of the lid and gives the 
])ackau:e the ultimate O. K. foi shade, color and so on. 
The box then travels down the chute to start the last 
stage of its trij) towards Old Man (or Young Man) 
Smoker himself, whose s])irit seems to have hovered 
over every steji in the ])iocess of its manufacture. 

But your tri]) is not entirely ended yet. This is the 
topmost main floor of the building, yet there is a two- 
story structure above it. On the first of these floors — 
the ninth, if you ]>lease — is a battery of ])aste-mixing 
machines to serve the ])acking department mostly, and, 
as you learneil in the beginning, a duplicate of the 
weather-manufacturing machinery in the basement. 
There is also the machinery anil (Mpiijunent for the 
suction system which ]»erforms those hocus-])ocus, 
presto-changeo tricks on the individual cigarmaking 
machines on the fifth and sixth floors. 

And on the tenth floor of this su]>erstructure — lit- 
erally above the roof — there are the huge tanks fcjr the 
building's water sui>ply and a "sjjray ik)o1" which is 
used for the cooling of the condenser water used in the 
building's refrigerating equi])ment. 

Boy, You've Seen Something! 

A dramatic ending ten stories above the ground ol 
a |)acked\vith-drama toui- which had its !)eginning two 
>tori(>s Ih'Iow the ground! 

And when you shake hands and thank your guide, 
vou know vou've gone i»laces and seen things; you 
knf)\v you've been somewheie and seen something. 

You've been through the largest cigar factory in 
the world, and you've watched them nuiking the largest- 
selling cigar in the world. 

You've been throuuh one of \hv plants of Hayuk 
riuars. Inc.— the one at Xinth and Columbia Avenue, 
in Philadelphia — and vou've seen them making Bayuk 
I'hillies. 

The Tobacco World 



President and Johnson Approve Codes 




RESIDENT ROOSEVELT approved the codes 
for the cigar manufacturing industry and the 
retail tobacco trade on June 19th, and National 
Recovery Administrator Johnson approved the 
code for the wholesale tobacco trade on June 9th. All 
three codes contain a ** cigar merchandising plan" 
whereby the manufacturer establishes the retail price 
of his product and which regulates the trade discounts 
which may be allowed at different stages of cigar dis- 
tribution. 

At the request of the trades, the order approving 
the wholesale and retail tobacco codes substitutes the 
Administration's recently announced price main- 
tenance policy for the codes' proposals. The propo- 
nents were entirely willing to accept the new policy, 
and asked that the change be made in the order of ap- 
proval rather than delay the code by the mechanical 
work involved in retyping. 

Acting promptly under the terms of the order, the 
code authority has already petitioner the Administra- 
tion to declare an emergency condition and to establish 
minimum prices. The request for remedial action is 
now being studied and will be submitted for a decision 
hy the Administrator. 

The waiting period in the open price provision is 
stayed in all three codes by the order approving them. 
The cigar merchandising plan's provisions for filing 
prices and discounts are stayed until ** satisfactory ar- 
rangements . . . are made for confidential treatment 
and for simultaneous distribution . . . .'* 

The cigar manufacturing industry code establishes 
a basic maximum work-week of forty hours, at mini- 
nmm wages ranging from 25 cents to 34 cents an hour. 
It is provided that the labor provisions will be reviewed 
within nine months. 

There are about 50,000 workers in the industry, of 
which over 75 per cent, are women. Total payrolls are 
nearly $35,000,000. 

The code authority is to consist of thirteen mem- 
bers. Three representatives of machine cigar manu- 
facturers and three of hand cigar manufacturers are 
to be selected by the Associated Cigar Manufacturers 
jind Leaf Tobacco Dealers; one by the labor advisory 
board and one by the consumers advisory board, 
N. R. A.; non-members of the proponent association 
will appoint one representative of each branch of the 
industry; and within fifteen days after the effective 
date those members shall devise a plan for selection of 
the others. 

The code for the retail tobacco trade establishes 
a sliding scale of maxinuim hours permitted employees, 
depending on the number of hours of store operations. 
This parallels the code for the retail trade and the 
retail drug trade. 

Minimum wages range from $10 a week to $17.50, 
depending on the population of the city and the num- 
ber of hours worked. The minimum rates are about 
15 per cent, higher than the rates now prevailing in 
other retail codes. 

The minimum wage rates established are expected 
to result in an increase of 10 per cent, in the total pay- 
rolls of the trade. 

Administration is entrusted to a code authority of 
ten members. Two of them are to represent the retail 
urocery trade and the retail drug trade, designated by 
the code authorities for those trades. One is to be 

Juiy I, 1934 



appointed by the N. R. A. consumers advisory board. 
Six members are to be chosen by the Retail Tobacco 
Dealers of America, Inc. (of whom one is to represent 
a national chain) ; the other member is to be chosen 
by non-members of the proponent organization. 

The code for the wholesale tobacco trade, approved 
Saturday, June 9, by General Johnson and effective im- 
mediately on approval, establishes a maximum forty- 
hour work week with permission to work up to forty- 
eight hours during two weeks of the year, and minimum 
wages of $14 to $16 a week, depending on the popula- 
tion of the city, with a $1 differential in the South. 

There are about 2000 wholesale tobacco establish- 
ments in the country, employing 16,000 people. The 
average capital investment is $100,000 to $200,000 per 
establishment, and total business amounts to over a 
billion dollars a year. In 1929 census figures a net 
profit of 1.4 per cent, is shown, declining to 0.3 per cent, 
in 1932 ; however, the trade reports that practically all 
wholesale tobacconists have suffered losses each year 
since 1929. 

The code is expected to result in wage increases 
of about 10 per cent., and an increase of about the same 
percentage in the number employed. 

In approving the code General Johnson stayed the 
provisions of the cigar merchandising plan, incorpo- 
rated in this code, until the two presidential codes be- 
come effective. He also stayed, until further order, the 
waiting period of the open price association. 

Labor provisions of the wholesale tobacco code 
became effective June 25th. 

In his letter to the President announcing approval 
of the code Administrator Johnson said that since the 
hearing N. R. A. representatives "have made certain 
revisions in the code, as is customary after public hear- 
ing. These changes are not in conflict with the testi- 
mony in the record of the public hearing and have been 
assented to by the industry.'' 

A code authority of ten persons will administer the 
wholesale tobacco trade code. Eight of them are to be 
designated by the National Association of Tobacco Dis- 
tributors, Inc., one by the Consumers Advisory Board, 
N. R. A., and one by members of the trade who are not 
members of the proponent association. In addition, 
the Administrator may name as many of three others 
to represent him. 

The cigar merchandising plan, carried identically 
in all three codes, regulates sales of cigars through all 
stages from manufacture to retail sale. 

The first section deals with sales by cigar manufac- 
turers. Such manufacturers are required to file with 
the Council the minimum sales price at which such 
cigar is intended to be sold at retail. That price is to 
be used in computing discounts. Each container must 
bear the retail price prominently marked. 

Sales to retailers other than chain stores or drop 
shipments are to be at a discount not over 28 per cent. 
Accredited jobbers get an additional discount of not 
more than 14 per cent., service jobbers get not more 
than two-thirds as much extra discount if there is an 
acccedited jobber in the territorj^ otherwise not more 
than 10 per cent. Drop shipments to retailers are 
permitted, with the permission of the accredited job- 
ber, if any, in quantities of not less than 2000 Class A 
or B cigars or 1000 other classes, at an additional dis- 
count of 5 per cent. Chain stores may receive the same 



discounts as accredited jobbers. A cash discount of 
2 per cent, is permitted in addition to the other dis- 
counts. 

These discounts do not apply to manufacturers 
selling exclusively to the consumer, but other manufac- 
turers are bound by the terms of the plan affecting 
retailers when they sell to the consumer at retail. 
**Free deals" by manufacturers are prohibited. 

Sales by jobbers and subjobbers are similarly 
regulated. They, too, nmst record their terms and 
discounts with the Council. Those discounts must not 
amount to more than the merchant receives on the 
goods. Jobbers and subjobbers are bound by retail 
terms when selling to the consumer. 

Retailers must sell cigars at not less than the 
manufacturer's indicated price. Sales in lots of not 
less than ten (if the cigar sells for more than 5 cents) 
may be allowed 5 per cent, discount ; boxes of twenty- 
five or more may be sold at 8 per cent, off unless the 
manufacturer has set a box price. The retailer may 
not give more than one pad of matches per unit sold, 
not over five pads per box of twenty-five, nor over ten 
pads per box of fifty. 

State taxes levied on tobacco products must bo 
added to the minimum price. Legitimate clearances of 
distress or damaged merchandise may be made at prices 
below the established mininmm under certain condi- 
tions. 

All discounts under the plan are to be computed 
separately and consecutively. 



EXECUTIVE ORDER 
CODE OF FAIR COMPETITION 

for the 
CIGAR MANUFACTURING INDUSTRY 

An application having been duly made, pursuant 
to and in full compliance with the provisions of Title I 
of the National Industrial Recovery Act, approved 
June 16, 1933, for my approval of a Code of Fair Com- 
petition for the Cigar Manufacturing Industry, and 
hearings having been held thereon and the Administra- 
tor having rendered his report containing an analysis 
of the said Code of Fair Competition together with his 
recommendations and findings with respect thereto, 
and the Administrator having found that the said Code 
of Fair Competition comi)lies in all respects with the 
pertinent provisions of Title I of said Act and that the 
requirements of clauses (1) and (2) of subsection (a) 
of Section 3 of the said Act have been met : 

Now, Therefore, I, Franklin D. Roosevelt, Presi- 
dent of the United States, pursuant to the authority 
vested in me by Title I of the National Industrial Re- 
covery Act, approved June 16, 1933, and otherwise do 
adopt and apy:)rove the report, recommendations, and 
findings of the Administrator and do order that the 
said Code of Fair Competition be and it is hereby ap- 
proved, and shall become eflPective on the date of this 
Order; subject, however, to the following conditions: 

1. That the provisions of Article VI and of Sched- 
ule I — the Cigar Merchandising Plan — be stayed 
and shall not become effective until Monday, 
June 25, 1934. 

2. That the waiting periods of five and three days 
contained in Article VI, Section I. and Schedule 
I, Part A, Section 1, and in Schedule I, Part B, 
Sections 1 and 2, respectively, be stayed and 



shall not become effective, notwithstanding said 
cigar merchandising plan becoming effective, 
until the further order of the Administrator. 

3. That all provisions for the filing of prices and 
discounts in said cigar merchandising plan be 
staved until arrangements satisfactorv to the 
Administrator, are made for confidential treat- 
ment and for sinmltaneous distribution thereof 
to all members of the industry and customers 
willing to pay the cost thereof. 

4. That the provisions of Articles III and IV shall 
be and the same hereby are stayed until, and 
shall become effective on, ^londav, June 2.">, 
1934. 

(Signed) Franklin D. Roosevelt. 
Approval Recommended : 
Hugh S. Johnson, 

Administrator, 
The White House, 
June 19, 1934. 



TRADE LEADERS ELATED 

Elation over the final approval of the Codes was 
expressed by representatives of the manufacturers, 
the wholesalers and the retailers, as follows: 

Harvey L. Hirst, for the Manufacturers: With 
the signing of the Cigar Manufacturers Code, a 
weapon is entrusted to us with which can be corrected 
many existing evils in the industry. 

If we use this weapon courageously, unselfishly 
and efficiently, the cigar manufacturing industry will 
be materially benefited and in a large measure com- 
pensated for obligations assumed in hours and wages. 

By every rule of common sense cigar manufac- 
turers should lend 100 per cent, support to this Code. 
Aside from the benefits to his industry, his own selfish 
interests demand just this. 

Joseph Kolodny, for the Wholesalers: As I have 
repeatedly stated, the Code will cure perhaps 7 per 
cent, of our troubles, leaving 93 per cent, to be cured 
by our individual actions. It will depend upon us 
whether it is successful or not. 

I again urge our members and the trade in gen- 
eral not to look to the Code to do it all. The Code, of 
itself, is just a written document. True, it outlines a 
highly ethical method of doing business, but it must 
be put into effect. It nmst be administered by human 
hands and human minds. They will recjuire our abso- 
lute lovaltv and co-oi)eration if thev are to succeed. 

The best thing about the Code is that it presup- 
poses co-operation among three branches that hitherto 
have been, if not inimical, at least inharmonious. 

William A. Hollingsworth, for the Retailers: I 
am naturally very hai)i)y that the Code has been 
signed. It will, I am sure, prove of enormous benefit 
to not only the retail cigar dealers but to the manu- 
facturers and jobbers as well. 

From my observation, drawn from many years* 
experience in the business and from close association 
during the jmst year with many of the leading mem- 
bers of the retail cigar industry, I am sure that our 
trade will play the game in a fair and square manner. 

To those members of the industry who have fought 
shoulder to shoulder with us during the past thirteen 
months I extend congratulations and the thanks of 
the retail cigar dealers of the country. It has been a 
hard fight but it will be worth it. 

The Tobacco World 




ENJOY THIS WAY 
OF INCREASING YOUR ENERGY 



With the pleasure of Camel's distinctive flavor 
comes an added benefit — an actual increase in 
your flow of natural energy. That exhausted, 
"dragged-out'* feeling slips away.. .your "pep" 

Smoke a Camel — comes flooding back. 

, . , This discovery, confirmed by a famous New 

and nonce its York research laboratory, means that by smok- 

"enerCfizinCf effect" '"^ Camels it is possible to restore the flow of 
^ your natural energy — quickly — delightfully — 

and without jangling your nerves. 

For no matter how often you choose to "get 
a lift with a Camel," dmeVs finer, MORE EX- 
PENSIVE TOBACCOS never get on your nerves/ 



"Cam*!* giT« m« 
• rafarMhiag lih' 
in •B«rgy wh«n 
I f««l tirsd ool. 
And iImj don'l 
intariar* with ay 
wMtr—." 

HELENE 
MADISON 

Olympio and 
World'! Cham, 
pien Swioun*! 




CAMELS 

Costlier 

Tobaccos 
never get on 

your Nerves 




Camals arc mad* from fiaor, MOIE EXPENSIVE 
TOBACCOS — Tut kiah and Domostio — than any 
•thor popular brand. 



-^Si^ 



S^ 



44 



Get 



'^^. 



with a Cam 



el! 



9* 



^/ 



CopTrtslit. 1934, B. J. Bcrnolds TobM(» Company 



J»h J. 1934 



Letter of Code Approval 

Sent to The President by General Johnson 




PUBLIC Hearing- on the Code of Fair Com- 
petition for the AVliolesale and Retail Tobacco 
Distributing Industry, submitted by the Na- 
tional Association of Tobacco Distributors, 
Inc., and tlie Retail Tobacco Dealers of America, Inc., 
was held in Washington, D. C, on December 15 and 
16, 1933, in accordance with the provisions of the 
National Industrial Recovery Act, pursuant to Notice 
of Hearing signed by the Secretary of Agriculture by 
virtue of Executive Order of June 26, 1933. Under 
Executive Order of January 8, 1934, jurisdiction over 
this Code was transferred to the Administrator for 
Industrial Recovery, whose representatives have made 
certain revisions in the Code, as is customary after 
Public Hearing. These changes are not in conflict 
with the testimony in the record of the Public Hearing 
and have been assented to bv the Industry. 

The most important change was the division of 
the Code into two codes, namely, tliis Code and the 
Code of Fair Competition for the Retail Tobacco 
Trade. This step was deemed advisable, inasmuch as 
the two trades each with its different problems, should 
be able to operate more satisfactorily under separate 
Codes and different Code Authorities. 

ECONOMIC EFFECTS OF THE CODE 

The Wholesale Tobacco Trade covers the whole- 
sale distri